Nice video. God knows what crap I was using back then but what you're doing there looks great. Works just like a normal PC I guess, impressive.
For the most part, yeah. Don't get me wrong, I'm not evangelical about it - a mixture is normally the best way forward, but done right the pros of thin client can really outweigh the negatives.
In my opinion, no. We're currently reducing our reliance on them as they're not much cheaper than a basic PC, and our Citrix environment is a lot more basic and heavily restricted than an average Windows 7 environment (so they're very unpopular with our users, although I suppose it'd be possible to tweak the interface a bit to make it slightly more user-friendly - ultimately though, security and control is more important than on standard desktops).
Basically, they're increasingly restricted in our company to dirty/industrial areas. We use XenApp receiver on PCs to allow us to publish certain apps via Citrix still, so our Citrix system does still have its uses!
Hence we get central management of more complicated apps, combined with a full-PC environment and easy remote-desktop working. Best of both worlds IMO.
That's pretty much how we used them as well. Right down to publishing apps to them via Citrix!