When Shekhar Borkar talks, the world listens. It is evident that issues related to ultra low submicron CMOS technologies will keep the power burning. But I am confident we can get this sorted out in the next few years.
Local computing is the original Wintel party line, he's reflecting Intel's wish to go back to glory days.
Better cloud argument can be made from a made up Big Brother horror story, like Amazon or Apple or Google or Microsoft monitoring your internet preferences.