At best that will buy us another few years of Moore-level growth. But you can't really have CPUs be more than 5 to 10 times larger than they currently are.
The numbers I've seen suggest that it's total 'processing power' is only on the order of a few hundred teraflops - and we already have plenty of clusters bigger than that. I know that floating point operations per second is a crappy metric but consider that a neuron can only spike about 100 times per second (i.e., the brain runs at 100 Hz) - even billions of neurons put together just aren't that powerful in terms of hardware.
Software, not hardware, is already the limiting reagent to 'smart' computers.
Everyone says 'massive parallelism' is the answer. But once transistor density plateaus the only way to add more cores (i.e., add more parallelism) will be to make CPUs physically bigger (or make each core 'weaker'). Making each core 'weaker' adds very little net benefit (2 * 100 = 20 * 10) and having physically larger CPUs isn't really practical beyond a point ...
I cannot say much about transistor density issues as I'm not competent in that area. I read that IBM is experimenting with nano technology in order to create much more dense hardware that uses very little energy. I have no idea how far out that sort of approach is.
Why not?
And if you can, it doesn't have to be located in your device considering improvements in network technology.
But since the vast majority of people do not run one or two applications per computer, that doesn't matter that much. I'll go out on a limb and predict that the day is coming when no one ever closes an application. Actually, my parents are already there on their Mac Mini -- they only close windows, never applications, until a software update requires a reboot.
I believe what we should really be interested in is running new types of applications, not speeding up word processing or other single user interactive tasks.