Will Phone be the Next Computer ?

MS envisions that Phone will replace computers in the future. I would agree with them. Phones are really getting smarter and has good industry and research backing. Maybe Web 3.0 might be Phone 1.0 ?? wherein people would migrate over to using their phones for some of the common functions like mail, word processing, browsing, ecommerce and more. The main issue I see with Phones are the User interface. Even if we have smart keypads and total LCD based display, it is still inconvenient to view pages and work on a phone. If we could integrate virtual reality with the phone, maybe it would become easy to visualize data in phones.