..touch displays, for years relegated to kiosks and industrial uses, are quickly becoming mainstream. Hewlett-Packard and Dell already have touch-capable machines, while Microsoft is set to make gesture input standard with Windows 7.
Attempts to apply new technologies in old [commodity] markets most often lead nowhere. I would bet that new touch-based applications will come from new types of devices, rather than spiced-up mainstream PCs. Another possibility would be that most popular iPhone applications migrate to Windows 7 machines.
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