Input latency is also becoming a major concern even outside of gaming. Can't see this happening. All data on servers, yeah.
Device seizure at border or traffic stop & browser-sandbox-escape drive-by malware OTOH are in normal person's threat model.
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This doesn't do anything to mitigate either.
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Seizure is completely mitigated by having no data on the device.
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Browser exploits are mitigated by having a sufficiently powerful cpu on the server to be running something Qubes-like.
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Virtualization works fine on existing mobile hardware. Implementing that is not a hardware issue.
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Virtualization also isn't the only good approach to tight sandboxing, and is used for compatibility not security properties.
End of conversation
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