There are compromises here. The video from the Intel lab showed a telecom switch, which if I recall, the 1Gbps switches used to cost around $40,000 ten years ago, back when I was installing fiber.
Not exactly sure what you mean by a telecom switch (could mean many things) but gigabit ethernet back in 1999 was virtually brand new. A 24-port 1000-SX switch today costs around $10,000. Either way, what does this have to do with Light Peak? Light Peak uses different optics and components and is suppose to be significantly cheaper than say OC-192 optics often used in telecom.
watching the connector ends to ensure it is cut correctly, and unlike CAT5, you won't be seeing easy to install connectors with length of cable.
Since the new interface would be used for display, USB/Firewire replacement, etc. When did you ever terminate you own VGA cable or Firewire cable? I'd agree about networking, but most people buy factory terminated patch cables as they are much more reliable and durable.
Sounds eerily like fiberchannel networking, which hasn't exactly taken off on the desktop/portable scale due to cost.
Seriously? Fibre Channel for desktop use? Do you understand the purpose of Fibre Channel? Kinda like saying an Airbus A380 hasn't taken off for commuting 15 miles to work due to cost. Can that really be considered a criticism?