Are we going to lose innovation in desktop software?

Everyone in my family apart from myself still uses ugly desktop software of which costs a fortune in comparison to equivalent web apps or mobile apps.

I feel with all the best engineering talent moving to mobile and social that innovation in this market will slow right down.

Anyone I talk to in desktop are all getting into the OSX app store. We can't forget the huge number of Windows users. I still see around 1 Apple laptop for every 9 Windows counterparts on a day to basis in the UK.

Is anyone building cool desktop software?