What happens when FAB technology stagnates, everything locks in place and micro-processor advancement halts? Nope, it takes years for the state of the art FAB technology to trickle down everywhere. All the while getting cheaper and cheaper and cheaper. That state of the art smartphone in your pocket, it uses processors fabbed using 28nm technology. Even switching to 14nm technology would quadruple the transistor count and allow a corresponding increase in performance. Also, as FAB costs come down it would be more and more cost effective to increase chip sizes up to the maximum feasible die size, further increasing performance. Meanwhile, as former state of the art processor manufacturing becomes cheaper and cheaper it becomes more and more ubiquitous. So now not only your CPU but also your flash storage is made using 14nm technology, and maybe they decide to cram a shit-ton of micro-controlling processing power in there (they already do) and a bunch of static ram for caching or whatever, and performance keeps improving. Meanwhile, the processors and controllers in the radio system, on the cell towers, in the switches and routers, and in desktop and server devices keep getting faster and cheaper too. So now you have a butt-load of resources "in the cloud" or "the fog" or whatever idiom you want to ascribe to the phenomenon, all available for making sloppy code run faster and better.
Ah, but wait, there's more. This is all the boring stuff, but there's crazy stuff out there too. Memristors are almost certainly the future of computing in more ways than one, and so far it looks like they'll be as feasible to manufacture and as practical as we've theorized. With durable storage that has access times faster than modern ram the performance bottlenecks of the past (which have rarely been in CPU and have more often been in I/O or RAM) will fall by the wayside. Pocket sized computers will have terabytes of non-volatile super RAM. You can write 3D renderers in javascript and they'll run at 4k resolution / 60 fps with detail beyond what state of the art GPUs are capable of pushing today.
So no, the hardware train isn't coming to a stop, in many ways it hasn't even started yet.
That doesn't mean that caring about quality and writing highly efficient code isn't worthwhile, but it does mean that there probably won't be a big mean performance bottleneck forcing everyone to get their shit together in the near future.
With 16nm parts in production now, I suspect conventional NAND flash has less an 8X density increase, and less than 10 years left, before we need some totally new tech to keep the party going. AFAICT memristors will not be anywhere near ready for high-volume production by then, at least not in a way that's better than NAND.
With the USD supply expanding 8-10%/yr, within a decade, we may actually see flash storage costs increase over time.
What happens when FAB technology stagnates, everything locks in place and micro-processor advancement halts? Nope, it takes years for the state of the art FAB technology to trickle down everywhere. All the while getting cheaper and cheaper and cheaper. That state of the art smartphone in your pocket, it uses processors fabbed using 28nm technology. Even switching to 14nm technology would quadruple the transistor count and allow a corresponding increase in performance. Also, as FAB costs come down it would be more and more cost effective to increase chip sizes up to the maximum feasible die size, further increasing performance. Meanwhile, as former state of the art processor manufacturing becomes cheaper and cheaper it becomes more and more ubiquitous. So now not only your CPU but also your flash storage is made using 14nm technology, and maybe they decide to cram a shit-ton of micro-controlling processing power in there (they already do) and a bunch of static ram for caching or whatever, and performance keeps improving. Meanwhile, the processors and controllers in the radio system, on the cell towers, in the switches and routers, and in desktop and server devices keep getting faster and cheaper too. So now you have a butt-load of resources "in the cloud" or "the fog" or whatever idiom you want to ascribe to the phenomenon, all available for making sloppy code run faster and better.
Ah, but wait, there's more. This is all the boring stuff, but there's crazy stuff out there too. Memristors are almost certainly the future of computing in more ways than one, and so far it looks like they'll be as feasible to manufacture and as practical as we've theorized. With durable storage that has access times faster than modern ram the performance bottlenecks of the past (which have rarely been in CPU and have more often been in I/O or RAM) will fall by the wayside. Pocket sized computers will have terabytes of non-volatile super RAM. You can write 3D renderers in javascript and they'll run at 4k resolution / 60 fps with detail beyond what state of the art GPUs are capable of pushing today.
So no, the hardware train isn't coming to a stop, in many ways it hasn't even started yet.
That doesn't mean that caring about quality and writing highly efficient code isn't worthwhile, but it does mean that there probably won't be a big mean performance bottleneck forcing everyone to get their shit together in the near future.