Why do you have a home network?
You really don't know anyone that carries close to 1 TB on a laptop or other device? Really. And you talk to people about this all day every day.
I did a quick survey around the office before I came home today and found that 500 gb up to 1 TB is about the norm that most of them have on their laptop or PC. Most of them wanted to be able to carry that much around with them on their iPod or iPad or other devices. We are not a high-tech company, I work in distribution. This desire for storage size is only going to go up. If not that would be serious paradigm breaking since the cost of storage and storage limitations have been the single strongest limiting factor on computer and software development. You still have not addressed the monthly fees for cloud storage beyond the anemic 25gb other than to say you would use your home network. For most people if they have to set up that kind of home network, they would buy a pc.
Has your cell phone bill gone up or down over the past 5 years? Did it go up with added data plans or down?
Hardware prices go down with time, services typically do not. Also you forget the product life-cycle. In the early part of a products life-cycle you typically find fewer suppliers and higher prices. The prices drop off as more suppliers enter the market place and as the technology improves and due to economies of scale. At product maturity you usually get the lowest prices and most competitors that the market can bear. You are addressing this as if we will enter this new product at the maturity phase of its life-cycle. You are also ignoring barriers to entry into the marketplace, which are high for tech products typically which limits how many players there are in the market over time. The cost of newer phones, even with a new contract, have been higher year over year for the past 5 years. Look at the Motorola Razr which was top-seller in what 2005? I got mine with a new contract for $99.99 and thought it was pretty high at the time. It has not gotten better. Check this out:
Why would they sell such a great tech product at $100 more than the best tech phone from 5 years ago? That is 100% inflation. If they now have a phone that so completely eclipses the iPhone and HTCs and Blackberrys you really think they will sell for LESS than those other phones?
See the development costs of these products have to be recouped. Development costs go up so does the price for the phone. Wonder why most new high-tech phones are about this same price? The extra cost is passed on to you from the cell company in the form of "fees" and charges for premium services. Look at your bill for some nebulous charge like "service charge" or "standard fees" and you will see it is around 15%. These fees were either non-existant a few years ago or closer to 5%. Believe me this new smart phone will cost you. Not all costs have a perfect little trail to a receipt.
You don't have kids do you, or kids old enough to use technology? If you did you wouldn't so lightly skim over the impact to the entire family. I have the internet on my TV now, admittedly limited, but no one likes to use it. It is no fun typing on your lap for one thing. For another, the TV gets used to, imagine this, watch tv. My kids show a strong preference for using the computers in the computer room with desks.
I cannot imagine anyone spending much more than an hour or so seriously computing in any way shape or form on your tv, unless of course you put a desk in there. Then the tv will probably be out of position for best viewing, so it would make sense to get a smaller tv and put it on the desk. At this point the interface box would need to be on the desk too. Also you would probably want a place to play DVDs or burn DVDs and CDs and such. You could add that in as well, and it would be nice to have it all in the same package as the receiver box. Then you would have a nice PC replacement in the form of a smaller tv on a desk with a keyboard and mouse and an interface to use DVDs or play games or something similar and to burn discs.
Wow does that ever sound familiar.
1: I know plenty of people that have well over 1 TB of storage. I know very few people (if anyone at all, actually) that feels they have to carry that much storage space with them. But then again, I do work in a high tech environment, and everyone I work with is already well aware that there are much better options. There is an app that lets you play music on your phone that you are streaming from your house. And setting up a network storage at home consists of buying one of those drives (or enclosures) that I linked to earlier, and connecting it to your home WiFi (or ethernet). It's not complicated. If you can watch Netflix on your tv, you can set up a network storage.
2: On a per person basis, my mobile phone plan is considerably cheaper today than it was 5 years ago. But I have my kids on my family plan now, and I didn't have that 5 years ago. So my overall plan is more today than it was 5 years ago, but per person it is actually cheaper. I had a data plan 5 years ago, so having a data plan is nothing new to me. I remember when "a penny per second" was the cheapest cell phone plan around though, and it is certainly a lot cheaper now.
3: Services absolutely go down over time. I have unlimited 3G and 4G data, streaming tv, unlimited minutes to any cellphone, unlimited nights and weekends starting at 7:00, free navigation, and more minutes than I could ever use to landlines- and I am paying less per person now than I was 5 years ago before anyone had 3G. Like I said, I remember when "a penny a second" (no free nights and weekends, mobile to mobile, etc) was dirt cheap for a cell phone plan.
4: If you think the RAZR was the best tech phone 5 years ago, you're crazy. The RAZR was a basic flip phone. They give phones like that away for free nowadays when you sign a contract. FYI, I spent over $600 for this phone back in 2004:
https://pdadb.net/index.php?m=specs&id=703&c=sprint_ppc-6600_htc_harrier
I got this phone for like $450 or $500 on contract about 5 years ago (first 3G phone):
https://pdadb.net/index.php?m=specs&id=409&c=sprint_ppc-6700_htc_apache
The RAZR was not even close to the best tech phone. Comparing it with the price of an iPhone is not even close to a fair comparison.
5: You want to know why smartphones are so cheap these days when you buy them on contract? Because they make such a killing on the apps, music, and everything else you buy. The Evo, which is technologically superior to the iPhone 4 that you listed, was $450 full retail (no contract) directly from Sprint on the day it launched.That is a lot cheaper than the $650 I used to drop (on contract prices!) for smartphones. The first iPhone was like $500 on contract 3 years ago. The prices have gone down, and it isn't because they are jacking up service costs. It's because they (Apple, Google, MS, etc) are making money off the OS, apps, ads, music downloads, etc, and they are giving the carriers a piece of that pie.
6: Trust me, I am well aware of the costs of cellphones for a family. Yes I have kids, and they have smartphones too. And they have had smartphones for several years now. They started out managing their own minutes on prepaid, and after a couple years of that I went ahead and put them on my family plan. I know the cost and I think it's worth it. And despite what you think, it's not any more expensive than it was 5 years ago. You get a whole lot more today than you got back then, and the cost is less. It's probably more expensive if you didn't have a smartphone with a data plan back then. But for people like me, who did have a smartphone and a data plan back then, it includes way more than we had back then and the cost is lower today.
7: Yeah, internet on tv is clunky right now because it's brand new, and there isn't anything for out yet. You can bet in a couple years all the kinks will have long been worked out. There will be all the same apps you can get on a smartphone. And there will be all kinds of keyboards, mouse, webcams, and every other accessory you can imagine. Right now is the ground floor. It's no surprise your kids prefer an actual computer. An actual computer is a lot better right now. But that won't be the case forever.
8: You're way, way off on the direction google tv (or any computerized tv) is heading. The interface box will be right next to the tv, or even built in (they are already like this). The keyboard and mouse and all that will be wireless (they already are) and you can use them wherever you want. The place you burn DVD's and such will be your Blu Ray player. And that is if you even care about burning disks anymore with the industry headed towards flash memory and cloud storage.
I know you are going out of your way to make an argument here, but look at it like this..
You just bought a phone for $150. For another $150 it can double as your laptop computer. Are you going to buy it? (and throw out your skepticism that it can replace your laptop, because it absolutely will be able to, so for the sake of argument lets say you agree at the time you buy it that it can replace your laptop). If you thought it could replace your laptop, would you buy it? Of course you would. And you may not think it will replace your laptop right now, but I guarantee you will change your tune before 4 years is up.