That is very unlikely to ever happen. There just isn't enough bandwidth/coverage available. Even with the research going on into 60 GHz networking you still won't have the coverage you need.
I can't ever imagine that happening. For anybody that works outside the office or leaves the home socially, storage will continue to be important into the foreseeable future.
Unfortnately recent history has indicated that you can't trust external services. Be it Microsoft/Danger, yahoo or whatever the evidence is clear you can't rely upon external services. In fact one of iPhones best features is the ability to do local backups.
You may believe that and frankly it might work for SOME consummer uses but only some. For the business world they will want more security and reliability than the industry can provide.
Dave
Dave, you need to have a little vision. I never said it would happen tomorrow, but it will happen. Perhaps it's just the sci-fi fan in me, perhaps it's more than 20 years in IT, but it will happen. It's happening already, and business actually here is leading the way with cloud.
Bandwidth is an issue we will deal with - look at what's happened in just the last 10 years. In my home in 10 years I've gone from 56k dial up to 20Mb dedicated line.
To make statements like it is unlikely to *ever* happen is just ignoring what *is currently* happening and more importantly, it ignore the concept of technological progress.
This is more than wishful thinking, it is happening already. Not as quickly as I'd like, but it is happening. You can't deny it, and to say it's just wishful thinking ignores everything going on today, and everything we can deliver tomorrow.