I guess they could and then in that case you would need the hypervisor 
and VM's on some kind of flash memory.  I think that this would be of 
limited use though.  In the mass market, I doubt thin client 
technologies will ever replace traditional OS's in the near future 
primarily because no one yet provides a package, over the Internet or by 
other means, that can meet consumer needs.  I DO see thin client apps, 
even those in a VM, gaining popularly over time for business because of 
the IT headaches it can save.  Given the ever growing bloat and 
complexity of both OS and desktop applications, I can't see that the 
current path of software development for OS and desktop applications can 
persist.
Could this happen using today's technology?  No.  Nobody has a OS-less 
hypervisor and there isn't a software package I know of that runs purely 
on the hypervisor layer in a VM.
Pete
Booth Martin wrote:
To get to my idea: Think Wal-Mart.  Wal-Mart could go to a firm in China 
and say "We will buy 500,000 devices over 2 years that do what a PC 
does, with no software.  It has to all be in the hardware.  Flash cards 
will be the memory method.   The target selling price for the device 
will be under $200 for the device.  There will be *no* moving parts."  
Could it happen with today's technology?
  
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