You're both correct, this is the way things used to be done, but if you crack open a VSphere5 book, this is also the way virtualization in the enterprise is going. Everything would happen at the core of the network, and be distributed back out to the clients/terminals. A/V, Office, even GPU sharing are possible using virtualization. Why not make that type of computing power available, so that people could potentially have access to as much, or as little, compute resources as they need, and then charge accordingly?
At the end of the day, this is all just a thought experiment on my part. I'm working on my Cisco Data Center cert, and eventually I'll pick up VMWare certifications as well. I'm from the armpit of the South, where jobs are slim and futures grim, so I was just fantasizing about building a massive Data Center that could be commoditized to try and bring jobs and much needed cash into the region. I'm just postulating ways it could be useful to companies, schools, hospitals, to try and make my tiny corner of the world a slightly better place.
If you guys wanna play along, feel free. I'm always open to different ideas.
/I would sell my own mother for some white widow or tangerine dream right about now. Alas, I've gotta abstain, since I'm trying to find full-time work. This contract stuff is getting old fast.