Apple has the critical mass that would see hotels, convention centers and so on setup this special apple docking station for public use, so desktop computing would be available everywhere within a short time frame - but this time without the risk of key loggers, viruses and so on because each user brings the entire device themselves and that even includes bio metric authentication. How sweet is that?
The iPhone could end up as the future of end user computing from a corporate standpoint because it also gives employees a personal device. This would probably see iOS device adoption rise for non corporate users as well.
Android would have no chance of achieving similar success because of the fragmented hardware base, myriads of OS versions available and the openness to malware it provides.
Do we want Apple in this situation? No!
Luckily i doubt it will happen as Apple usually is their own worst enemy, with the strict doctrins and fixed solutions they insist on. Such a simple thing as a mouse in iOS is probably never happening, and then the entire model described becomes impossible. Like it or not, a mouse is still required for general computing for many years to come. It's still - by far - more effective than touch for several kinds of computing tasks.
A dock would also eat into the Mac marked... something apple would go to great lengths to prevent.
So what’s the alternative? To be honest, probably a fragmented end user computing space, like we have now for the foreseeable future. I could venture a guess on a solution, but I doubt that’s a very realistic scenario. Vmware argued for this many years ago, and it's been quiet ever since.