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I believe the poster above you was referring to full cloud-hosted Virtual Desktops, not just cloud-hosted OS. The former would make a lot more sense and would indeed allow for need-based scaling of resources without any expensive local hardware. I think this is the future of the common man's computing experience - a nice monitor that also functions as a thin client to access web-hosted virtual desktops.
Yup, that was what I understood it to be, I'll admit to just skimming the article, but it seemed rather directly that?