Having each app on a separate device would actually make it worlds easier to perform real work, because I'm no longer Alt-Tabbing or Expose-ing back-n-forth between programs. I hate doing that because it forces me to stop thinking about my work in order to think about how to manipulate boxes of pixels into the configuration I want.
Right now I'm considering spending another $1K to get a 27" Cinema Display to go next to my $2k 27" iMac. But I'm wondering if I should have spent that $3k on a stack of wireless tablet computers of various sizes and leave some Bluetooth keyboards around the house instead.
Edit: Now that I'm thinking about it more, I believe this is the trend and the reason desktop innovation has stalled. In a decade we'll all have solid state hard drives and ten times more RAM, so every app can run in its own VM. You could suspend an app's runtime state to disk, transfer it to another device and resume where you left off. "Bump" your Final Cut session to your big-screen when you need to, then "Bump" it back to a tablet when you wanna continue editing on a park bench.
I don't know why we can't do this with web apps already. It transcends the whole idea of a desktop manager.