Ouch, each to his own but not for me!
Combination of tiny screen , having to reach out and touch the screen rather than just put a hand on the mouse and the latency involved in using a remote machine would make this a nightmare for me!
Judging by the photo of the setup on the desk I would assume you have to lean quite far forward in order to see the screen (unless you have very good eyesight) and I have enough backpain as it is.
Using any graphical tools at all (unless there is an ipad version) must be a major pain on this setup!
I find working on a laptop bad enough but when I really need to be portable and can't take my dual monitors with me the combination of internet hosted source control + IMAP email + dropbox means that I can grab my laptop and just walk out the door without worrying about where my files are
so I'm not really sure what advantages you get from this setup.
Of course if your happy with your setup then that's totally cool, what worries me more is if the desktop market dissapears and it becomes necessary for everyone to use a setup like this, it would feel like a massive step backwards to me. I'm just too used to being able to lie back on my chair, have my keyboard within easy reach and clearly see everything I need to see right in front of me in big readable text.
As an aside I also don't really like widescreen monitors for doing work , especially programming as vertical screen estate is much more useful than horizontal when trying to look at allot of code and figure out where the bug is. But it seems almost impossible now to get a large square monitor that doesn't cost an arm and a leg.