http://www.youtube.com/watch?v=oCZMoY3q2uM
Packet switching was "utter heresy" (20m in) when it was invented. It "wasn't a network, it was an inefficient way to use an existing network". And it almost collapsed 25 years after it was invented; the presenter is famous for inventing the modern TCP/IP congestion control that saved the Internet [1]. The TCP/IP flow congestion algorithm has been redesigned several times since [2]. It works not because it was designed well, but because it wasn't designed and instead evolved over many years with many contributions from people devoted to keeping it working.
Alan Kay is usually who I think of for great ideas that "work in theory, but not in practice". He's done some crucially important work in OOP, programming languages, and GUIs. But note that we don't actually use SmallTalk; instead we got C++ and Java. Nor do we use Dynabooks and Altos; instead, we got Microsoft Windows.
[1] http://en.wikipedia.org/wiki/Van_Jacobson#Career
[2] http://en.wikipedia.org/wiki/TCP_congestion-avoidance_algori...