I don't agree. It think this is beyond a server/terminal model, where the terminal is just a dumb interface extension with the server doing all the heavy lifting, though there may be instances where that makes sense. This is next logical step for people that have been digital for a few years and are needing to normalize all their assets and access them from wherever they are.
What would be awesome is if the server is smart enough to know what the capabilities of the device are and adjust accordingly, so if I have an HD movie in iTunes, it automajically scales down the quality for streaming so I don't have to have two versions. I have more music than I'd care to keep on my Macbook Pro's 160GB drive but I still want to have access when I'm out and about and have the urge. I've been waiting for this kind of thing. If its done right, it could be huge.