Clearly, "thin client" was hyped and fizzled out, because it isn't quite what people want. They don't want a "thin client" to the cloud. A pure thin client is pretty dead when there's no network or the server's down. A "Fat Cache" would retain all of its functionality and the user's most used data. It would also have most of the advantages of thin client, namely invisible centralized administration. It would also ameliorate all of the disadvantages.
iCloud, Chromebook, and Kindle Fire/Silk Browser are all moves in this direction.
The focus of a computer user should be their data. This includes apps. The apps should also live in the cloud and just appear on all the user's devices. In fact, the user's application "session" should be in the cloud too. I should be able to start a session on a recipe app on my smartphone in the living room, then walk to the kitchen and just seamlessly continue my session on my tablet. No reopening the tablet version of the app, no repeating a search for the same recipe. At most, just one user operation to "open in tablet."
All these form factors should just be seen as interfaces to our data, just instances of a "fat cache."