I don't think that server side frameworks will become irrelevant. There is still a lot of value they add between the database and the HTTP interface. The part that will become irrelevant is the servlet/ASP/JSP/ERB and similar view-layers, where page-rendering policy is executed on the server. With more & more clients getting ever more powerful processors (including iPhone, Blackberry, Palm and Android), the client can do the job of executing the page-rendering policy.
This will mean that many applications will be able to stuff their JS (which will have to codify page-rendering policy), CSS, and static files on S3, and use the server just for authentication, authorization, activation, and data. My coding experience with Rails, ASP.Net, and PHP tells me that the most frustrating and error-prone part of using web frameworks is the templating language where you have client-side code and server-side code mixed in in the same source code file in three or four different languages (e.g. Ruby, JS, ERB, CSS).
Authentication is the big issue here, but don't all of the cool kids use OAuth, FB Connect, JanRain Engage or something like that these days? If so, then once you authenticate yourself to your applications via your identity provider, only a session token between a client and server is needed to authenticate per request. (Or you could use an additional challenge-response token to one-up the man-in-the-middle attackers).
The SEO side of this has some interesting possibilities. Of course, this technology will hurt the search engines, because your content will be much harder for them to index. Most folks will find it hard (at least initially) to use Google's prescribed tricks to make your AJAX page bot-friendly. On the other hand, it also means that your application gains some information asymmetry (because your content cannot be easily found and compared with similar content on the web), and you could use that to your financial advantage. The key here is to give the search engine enough static content as index-bait to get your site's name "out there" and on page 1 of the search engine rankings, but not so much that all of your valuable content is indexed and commoditized to the advantage of Google/Yahoo/Bing.