The whole plan is to make personal computing unaffordable so we have to rent cloud services to do anything.
That's certainly a byproduct of what they're doing but I'm not convinced thats the goal as the biggest PC buyers these days are businesses and I don't see them jumping on board with that since it doesn't benefit them at all. You could argue it would reduce their IT needs, but it won't really as they'll still need physical devices for everyone, networking gear, dedicated PCs for certain tasks/uses (like running equipment), not to mention having to store all IP on third party hardware.
For consumers, I think most people have enough computing power with their phones as it is and most of the rest can be handled by some 10 year old thin office client. Outside of higher prices across the board, this will really hurt gamers and PC enthusiasts the hardest which is probably quite a niche market.
As someone tangentially related to all this, I'm not so sure how accurate this is. The equipment we have isn't ever sold until its completely deprecated and the space is needed for new tooling as a lot of this equipment takes years of planning, installation, and qualification before its ever allowed into production (along with strict service term contracts). The market is also relatively small and this would effect everyone equally, so I'm not sure how solid a plan like this would be. I imagine it would be similar to the housing market after the '08 crash where everyone is trying to unload dead weight at the same time which further devalues everything at a time when capital is desperately needed and sales have plunged off a cliff.