If you remember the old days of mainframe based applications with desktops as just thin clients, then thats what I see desktop virtualization technology direction as being. Goes with web based applications like Googles office online or microsoft online and gigabit networks.
Back in the old days, there was only 10baseT networks and with large business having sometimes hundreds of clients trying to access mainframes, the infrastructure and mainframe computing power couldn't handle the traffic and load.
So offload to the applications to the desktop.
I think for large businesses that have a big server farm or web hosting companies, server virtualization really cuts down on total cost of ownership. no need for large warehouses of servers.
For smaller companies, virtualization adds an element of complexity that requires specialized skills that might not be cost effective.
An analogy would be the medical field. Used to be doctors were general practioners. Now, almost every area of the medical field is a specialist. With that specialization comes increased costs.
The IT field is similar. Gone are the days of the generalist. Everything is complex so the need for specialist. Businesses have to hire all these specialist to cover the complex computer network and desktop environment.