Time will tell. I can see where Apple's model will work for most things and is especially nice in that it forces heavy processing to the server, but things like streaming radio and like will suffer. It's easy to dismiss it with statements like "I'd rather have a fast phone" but that's a needless and inaccurate generalization. There are apps that do very little and still manage to suck up cpu and memory and there are apps that do quite a bit, such as Slingplayer and, for what they do, are very reasonable with cpu time and memory.
My guess, and that's all it is, is that true background execution will be doable but on a case by case basis as determined by Apple. If there's a killer app that Apple could use to promote and sell the phone, I can't imagine that they'd say "no, we don't do that". Just like their prohibiting streaming data...unless it's convenient for them.