Re: Are we seeing a pandulum swing or are we seeing the end of PC?
There are some things I have "in the cloud" but I always have local copies, too. No way do I trust companies not to lose my data.
The PC isn't going anywhere. It's still a requirement in the business world--thin clients don't cut it for any serious work. PC gaming is also still quite common.
You might find that users with very minimal needs (e.g. grandmas who just check email and play Scrabble) can get away with something less than a PC, but this won't be true of most people. PCs are just very low-priced commodities at this point, and I think HP has been rather lousy at the whole brand identification thing. When you think "HP computer," what does that bring to mind? Probably not much, right?
I recently bought an HP desktop and am quite happy with it, but I admit I only bought it because it was cheap, not because I have some special attachment to HP. Dell seems to do pretty well with their PC business, as do Lenovo, Acer, Asus, and others. But you'll notice they all have their niches. Dell is big in the corporate desktop world, Lenovo is well-known for Thinkpads, Acer and Asus are known for their laptops and netbooks. If you're going to be a successful PC maker, you need to make your brand distinctive--stake out a particular market niche and appeal to it. HP has always failed at this, as far as I can tell.