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"One size fits all" was always kind of wrong - he said so himself back then. What changed? You might think that the thesis hung on something about main memory size scaling, but that doesn't seem relevant to many of the specific kinds of workloads he mentions.
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In short, it seems like he was mostly wrong because: 1.) He failed to consider performance _relative to the total cost of ownership_, 2.) Having a memory hierarchy is really helpful when you think about costs in a holistic fashion, and 3.) Minimizing complexity really matters.
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