I think a hybrid approach is inevitable. Some core local services (i.e. local processing and ability to seamlessly operate offline) and some cloud-based services and storage. Which is basically how most of our smartphones and tablets operate anyway.
It will never be "just cloud" nor "just local".
I don't believe this article is saying it'll be the former, but the inference is there in the title (or might be misunderstood that way).
Btw, the other day I had a song idea but was away from my home studio, so I used an app on my phone to capture the essence of it. Later I did a bit more on my tablet (the song idea was "just there" courtesy of it automatically being updated to the cloud). Later still, and I'm editing it in my home studio. This was all pretty cool, but cooler still was that later I had more ideas for the same song when I was away from my studio -- so I just picked up right where I left off on the phone, and it already had the updates I'd made on the tablet and PC.
Now that's a cool and seamless way to work.