Very interesting read. I think he could be right, growing demands on software complexity (computer games are a great example) cause hardware to get more complex as well. Because cpu's rely more and more on multithreading and gpu's are used for gpgpu, software development becomes harder. This could (or perhaps already has) reach a point at which it isn't economical to achieve higher quality while the computing power is available.
A combined cpu+gpu approach like Larrabee and AMD's Fusion (I don't expect Fusion to be comparable to Larrabee though) could be the solution on the hardware side. On the software side I think OpenCL could provide (a partial) answer. If OpenCL becomes a much used standard, that would be great for the Linux community I think. Because it can run on any platform, it becomes more interesting and less complex to create portable software.
It could be fun to look back at these slides in 5 - 10 years time and see whether Tim Sweeney was right.


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