I did that for a while, actually. I was using cloud9 from a variety of (low-storage) netbooks. It did require a persistent network connection, but it was remark

I did that for a while, actually. I was using cloud9 from a variety of (low-storage) netbooks. It did require a persistent network connection, but it was remarkably functional even on extremely tenuous wireless links. It was nice to have a dedicated workspace+vm for each project, without having to store everything locally, and the workspace was always exactly how you left it, even the running or half-typed terminal commands. I'm not sure I want to work that way by default, but it's quite practical, and potentially even preferable.