The idea that services will replace stuff is an idea that recycles - it comes and it goes.  It's much like the notion of 'thin-clients' in that respect - you can have a large central server that will do all the work and will cost less than having distributed hardware sufficient to do the job.  Then the idea comes of having distributed hardware again to avoid the slowdowns from overloaded servers and networks.

I expect that some 'stuff' will be replaced with services, and some 'stuff' won't and regardless people will invent lots of new 'stuff' to replace what little we replace with services.  :)