Funny thing about that last post - immediately after I made it, I ran across this story on Sun's acquisition of Tarantella:

Tarantella Inc. is losing money and customers, but its thin-client technology found a potential savior last week in Sun Microsystems Inc., which is acquiring the Santa Cruz, Calif.-based company for $25 million in cash.

Kind of makes my point, I think. Sun is blinded by their vision of thin network appliances, but the market simply isn't that interested. Full bore PC's are too cheap, and they can function as either network clients or standalone systems.