I'd much prefer to have a single trusted device than spread my digital life across "a cloud".
IBM's MetaPad was a similar idea.
Today, the Asus PadFone probably comes closest.
I "work around" application state to a great extent with Xmarks (lets me open remote tabs) and screen, but it's a kludge compared to always having my main computing device in my pocket, ready to connect to any screen and keyboard to just keep working. Imagine hotels offering HDMI input to TV's + a keyboard so I don't have to use my "small" 17" laptop screen. Or internet cafees where I can "bring my own machine" with all my own applications and data.
I don't see how multiple devices is a "much better design" when we're always carrying one device around with us anyway. It's incredibly wasteful. Devices augmenting it with additional functionality, sure.
The only things holding back the smartphone as "the one" main computing device for most people is performance and capacity. Of course there will always be a need for more powerful machines for some niches, an there'll always be a need for e.g. laptop shells (and for "real" laptops too).
But for an increasing number of users, the power of a smartphone is rapidly exceeding what they need from a laptop or desktop computer, and then it becomes increasingly appealing to springing for a higher capacity smartphone if it can double as our main computer "just" with the addition of a "laptop shell" or screen + keyboard.
Keep in mind the PC desktop and laptop market has stagnated - average prices are low because the typical non-Mac PC user opts for low end models because they no longer see a need for the performance bump of the higher end models.
The performance a typical PC user wants, and the performance possible with mobile technology will soon intersect.
Personal Cloud is a better option.
I personally would be more than happy to own a single device that I could take with me and still know I had all the computing power I needed, without the bulk of a desktop or even a small laptop.
Monitor and keyboard at home, one at the office, phone in my pocket all backed up and synced in my personal private cloud.
That's not a problem for anybody else. It's practically a non-issue.
http://shopping1.hp.com/is-bin/INTERSHOP.enfinity/WFS/WW-USS...
Those are the monitors HP aims at the enterprise. A lot of them have VGA only, and none of them have HDMI.
So in my organization, we have thousands of monitors that would require an adapter at minimum and maybe a couple dozen floating around that were special ordered one-offs that might have HDMI built-in.
The little geek in me that wants to live in the Jetsons' future is going to be pretty disappointed if, 5+ years from now, I'm not unplugging my phone from a dock at home and plugging it in to one at work to meet all my computing needs.
I know about the cloud. I distrust the cloud. The cloud is not for me.
Nowadays, it seems like a much better design is to have multiple devices with different form factors that can access shared data via a cloud.
(unless this product is meant as an NSA-proof system, but I don't see that it makes a very convincing product for that use case either...)