Interesting article, but I disagree mostly due to my personal preferences: I am more comfortable using GMail+GCalendar+Gdocs in my workflow, buying MP3s cheaply on Amazon, and having the relative openness of the Android phones over the iPhone.
Still, for non-techs, the Apple do it all approach would be very tempting if not for the much higher cost of Apple gear.
I may be calling this wrong, but I think that we are going to the commoditization of just about everything: cheaper bandwidth, cheaper devices, low cost or free software, etc. The market will grow but individually products and services will get much cheaper.
Very long term, will most people be willing to pay for the Apple cost premium?