Desktop, A Thing of the Past, Eventually?

Emad, Francis and I were talking about how Google Desktop and Yahoo Desktop Search didn't solve enough of user's problems yesterday and the day before yesterday on separate occassions. Bam! Jon Udell, the influential Infoworld analyst who usually have good ideas and insights writes a piece about it today, when was desktop search when we needed it. He speaks of the cloud (The Network is the Computer, remember?) and how he prefers to save everything there and search there. This is his conclusion:

One of the ironies of desktop search may prove to be that, by the time it went mainstream, the personal hard drive was about to become an endangered species.

How appropriate! Users don't want to be concerned with the distinction between their desktop and the cloud. They just want to be able to:

1. Create stuff (documents, pictures, book marks, anything).
2. Tag stuff so that they know which is which.
   
3. Search for stuff so that they can locate it and use it.
4. Share stuff (humans are social, right?).
   

Where is the concetp of desktop this all of this? We strive to make the above easy for users, whether connected or disconnected, whether using a PC or a cellphone.