Well, I don't know how much we have to worry about production oriented software disappearing.
From what I see, the web has caused a shift in the production of cultural content, away from centralized media industries to something resembling cottage industry. Wouldn't there be a rise in production oriented software to meet the demands of creators needing better, faster, and easier tools?
Let's face it, the web is never going to take over for production oriented software. People will need to be squeezing every last calculation out of their hardware while they're making things and they need feedback without delay.
You couldn't work in Illustrator with a 50ms delay, so where do you draw the line for what is computed client-side and what on the server? Sure, filters could be processed server-side. But complex drawings, taking up lots of RAM, constantly requiring a re-render?
We don't even need to talk about server-side audio production.
It's not that there aren't tools that work just as well or much better when served in the cloud, it's just that there will always need to be tools that demand to be run as close to home as possible.
It seems to me that the amount of people wanting to use production oriented software is going to grow at least at the pace of consumer oriented software.