The thing you aren't realizing is that while it might not matter to the person using Microsoft Word on their computer, it matters because now Google has more CPU power to give them better search quality, and Youtube can show people videos on their mobile phone, and WOW can support millions of people logged on to their virtual worlds, and a small startup can buy a server that can scale to thousands of users for a few hundred bucks a month. So while it doesn't affect that individual users machine, the hardware improvements absolutely affect what they do on their computer, and in a very beneficial way.
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The thing you aren't realizing is that while it might not matter to the person using Microsoft Word on their computer, it matters because now Google has more CPU power to give them better search quality, and Youtube can show people videos on their mobile phone, and WOW can support millions of people logged on to their virtual worlds, and a small startup can buy a server that can scale to thousands of users for a few hundred bucks a month. So while it doesn't affect that individual users machine, the hardware improvements absolutely affect what they do on their computer, and in a very beneficial way.