I think it's pretty far off as well. In a Utopian society where there was no malware and people wouldn't pry into private information or mishandle information, it would be great to have everything connected and available from anywhere.
Since that's not likely to happen, we're going to have to continue using offline computing for a number of reasons. First and foremost is that internet technology, though widely available, is still too expensive and limited or unavailable in too many parts of the world.
Second, we're going to need better encryption being used in nearly all formats of internet use. E-mail, IM, file transfers, web sites, etc.
Third, and this is related to the first, bandwidth is still too limited for web applications to provide as good use and offline software. Although I suppose you could still download the software and install it locally, but it could require an internet connection to use. But that's not cool.
Things are definitely heading in that direction, where physical distribution of media is slowly being phased out in favor of digital distribution. And I can see how this could relate to most things done on a PC. But we've already seen all the problems this causes, with DRM, etc.
There are a lot of changes that need to take place before absolute online computing is feasible.