How do you figure? On my MBA the TB connector is about 60% the size of the USB connector. And regarding the package size - Intel just shrunk it by about 1/3 from Light Ridge to Cactus Ridge. I'm very optimistic there is more potential in it over the next 5 years...I see a few problems that do not have easy solutions, even in 5 years:
1) Thunderbolt is kinda bulky. [...] if you add thunderbolt to an iPad, its going to get substantially bigger.
The current iPad tops out at $829 - the current MacPro starts at $2499. Lots of room there if you want to place an iPad Pro intended to at least complement the Pro line of products...So, do we see an iPad Pro, that is a little bigger but has some of this functionality? And how expensive will that be?
Besides the fact that Apple does operate worldwide and thus the global bandwith situation is much more interesting than any national tidbit - yes, cloud storage is currently in its infancy. So was USB when Apple replaced all the legacy ports on its first iMacs by that new technology. If demand is there i'm sure the available bandwith/speeds will increase and relative costs will come down.3) Cloud storage is expensive and slow. [...] Our national bandwidth can't handle much more.
And if that won't happen fast enough (which more probably than not will be the case) Apple may realize that and think of something to bridge the time with other approaches, e.g. home/local clouds based on dedicated hardware. Think NAS/Time Capsule, only bigger and faster, suited even for pro use.
A very bold statement! Apart from the "economies of scale" factor we are already facing a paradigm shift, where high performance is reached with lots of small, cheap and (individually) weak computing units rather than a few calculation beasts. (Not only) CPU frequencies have reached a wall, so development moved towards multicore/multithreading already.You might say tablet will drop in price, but certainly a PC with greater performance will always be substantially cheaper.
Now put a bigger number of those cheap computing units together accordingly (think multicore - just on a [way] bigger scale) and suddenly you may have a system with more power for less money than a full-blown MacPro!
Apple already started to collect experience in that direction (e.g. xgrid, Grand Central, ARM chips for Mac computers in R&D etc.).