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I think that there are two problems with this analysis - technology and form-factor. Arguably, the technology issues (like battery life and screen qualities) will be addressed over time, allowing smartphones to take over more functions. But the form-factor issues - size, interface etc. - aren't going away.
The tablet/netbook one seems the craziest to me - the idea that a ~2 inch screen will replace the ~10 inch screen.
I'd also question whether the console is "toast". The form-factor of a console is different - D-pad, buttons etc. Games on a smartphone are not the same. It's difficult to interact with them in an immersive, natural way. Some games manage it (I think Angry Birds' success is due in large part to this), but the traditional genres (shooter, platformer, racing, ...) do not translate well.
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