These predictions have been around for a while. Lets see I recall things like the "cassceiver" (cassette receiver) back in the 70's. Was supposed to make the separate receiver/cassette deck obsolete. Or the CD player built into the receiver, or just the receiver itself, why have separates?
My point is that while it is possible to do it all in a single box, it necessarily isn't the best, nor desired. Some early DVD players did in fact all the decoding in the box, then whoops! another standard came out.
I take all those with a very large grain of salt. While I think all decoding will be done in the box, I do not think it will obsolete separates from also doing the decoding. Not for a while anyway.