That would suck I only get 1.5mb/s around here. I don't see it going completely cloud anytime soon though. I really don't think anyone's internet is fast enough to make it practical you'd need internet that can do at least 100mb/s continuous throughput.
On another note I heard today that Iphone os 4.0 (Ios 4) is going to actually be a free upgrade for ipod touch users which to me is good news I really am looking forward to being able to finally multitask