Erm... maybe, but not for the consumers who are in Valve's target demographic. Valve sells AAA video games, and while tiny systems might have the hardware to be able to play today's TF2 five years from now, their games will also have moved on.
Android only works on PC at all through third-party forks, and certainly doesn't have GPU support. Whatever else you think of Canonical, they've been taking point on getting graphics driver support for Linux.
Valve Time seems to disagree.
(a) Games of tomorrow will be made to host creative communities, which almost mandate those games to be for desktops. It's just too awkward to do serious modding work in a tablet.
(b) What is really worrying about the PC is not the format being outdated -- Minecraft, LoL, TF2 and WoW attest to its potential. What's wrong is Microsoft awkwardly replicating mobile ecosystems. Creating videogames now is all about novelty, taking ideas to market fast, and growing cool communities around these games. This just can't happen, when your platform maker is Big Brother's whiny, lazy cousin.
All in all, I just don't get why the Droid Brigade is so enthused about mobile gaming. It's probably an USian localism. The cons: Android smartphones are slow and jerky and shit; the iPhone is like Manhattan if it were a North Korean gulag; fat-fingering your way around is the shittiest of input methods; and most of the games are preheated gimmicks, tastelessly exploited before the camera until boredom strikes.
Most of the performance increases in ARM recently have been from multiple cores. That ship has sailed. The low hanging fruit has been gathered. Anyone expecting performance increases similar to what Intel managed on the x86 over time is going to be disappointed.
Intel will probably get isn't offerings down to compete with ARM before ARM is able to boost performance to compete with Intel.
Didn't apple just announce their A7 chip (64bit, double registers, etc), supposedly based on the arm8? Rumor is that it is 20nm process with TSMC as the fab.
But it isn't just a matter of raw size. The performance you are getting out of it at a given size is an issue too.
ARM may take the world of smartphones by storm, but it really hasn't made significant inroads into areas where performance matters.
Much in the same way that mobile/social gaming didn't displace "hardcore" gaming, ARM hasn't displaced Intel. It just found another audience with different priorities.