Again, these devices will become completely configurable virtual machines that will grow more and more unique over time. In case you didn't tell, things sound suspiciously similar in both futures. Computer performance and storage is approaching infinity. At this rate there is no barrier that computer technology won't eventually be able to cross. Humans are fixated on the tangible assets that they can see, touch and show off to their friends.
People change slowly.
This wasn't because it was technologically infeasable to do it, it was because it took a whole new generation to understand that cars shouldn't be hand-cranked monsters that only real men could handle. That's when things will take off. Whether we take the infinitely cheap data model, or the infinitely powerful network, we are getting to a completely different structure for society because of information and that we are able to increase it's distribution and eliminate it's cost. This potential will bend the minds of users and force society to adapt to whole new business concepts, markets and ideas.