You’re thinking about how people are currently using their devices instead of thinking about how they will be. You could access your computer from any internet connected device, anywhere.
Hook up your oculus rift to their paperweight and have a full powered computer anywhere (with internet access).
While they are mentioning you can use AutoCad, I'd say that is merely to show that it can handle intensive applications. The majority wants to be able to surf the internet, and with this, you would never need to buy another computer again. For the random times you need to run Photoshop it can do it and will scale up to it, other times it scales down to handle your reddit addiction.
Look at how many people use Dropbox, iCloud, Google drive, etc etc. Everyone is already ok with storing their files in a datacenter. Privacy issues or not, people have accepted it is fact and the high majority already do it. That's not to say it is right, but it's a given that people want convenience over privacy.
Buying a Macbook air costs around 1k. And most people seem to upgrade ever 4-6 years. This costs $10/month. The cost savings are blatant. I know I’m comparing it with a mac and they are overpriced and you could do so much better, blah blah blah.
The fact is that if latency problems can be overcome, there is really no reason beside privacy that one needs to own and maintain their own computer. Rented space that you pay monthly for is cheaper, and will adapt to fit your specific needs. It works much better for a internet connected society to share several supercomputers then for individuals to each own their own.