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With audio, it is seriously child's play. Compression is about as CPU intensive as you can get with audio outside of voice recognition, and it just isn't there. Not true. Try running a really complicated Logic set with a lot of virtual instruments on a low-end machine and watch it grind to a halt. In the last year we've seen new virtual instruments that bring analog emulation to a new level but they can eat as much a…
This is true, there is still a gulf in performance requirements between something that needs to run a browser and angry birds and something that will be used for high end gaming (or game dev) and stuff like Music, CAD , Video creation. Assuming that we can keep cranking the moore's law handle in one way or another people will always find a way to use that extra power even if the rate of return is somewhat logarithmic…
Music is a particularly difficult case because latency is an absolute killer. If your response time is over about 10-20 milliseconds people will start to complain. You could farm out offline rendering I suppose but so far it's a lot easier to build a big beefy workstation and freeze tracks to audio if necessary on the local disk.