I do most of my work in the terminal and the browser. If I could somehow use a remote terminal with the convenience of being able to open files with image viewers/etc on my local machine, I have no need for a local disk.
I've been looking at Chrome OS for this very reason. Apparently it includes a terminal app. I almost never have a program other than a terminal and a browser running, so it would work out perfectly.
That being said, since the Chrome OS devices don't have a full suite of command line tools, I'd need Internet access to attach to a VPS. Current cellular data pricing makes this a sketchy requirement for me.
X forwarding is just too slow
I don't want to wait >300ms or so for my input to generate a response. HTML + JS serves the same purpose as X forwarding with your application hosted on a remote box displaying in your local browser with the exception of javascript allowing small amounts of local computation to be performed when it makes sense.