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Can somebody explain how and why this will hurt consumers like me? As long as I can still buy some general purpose computing device with 2013 desktop performance that I can plug a screen and keyboard into and run/write software the end of the upgrade treadmill seems pretty welcome. Am I missing something?

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Yes - that the progress so far has allowed other form factors like smartphones. If it continues, it may open up new possibilities as well that wouldn't be feasible with the current level of chip technology.

So my loss is that I won't be able to buy hypothetical new devices that I don't currently know I need. This seems more like a problem for manufacturers than for me.

This hypothetical new device was the Internet not too long ago, and the PC not too long before that.

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