However, I did notice recently that another senior MS person suggested that in 5 years, software development will be completely changed. He was referring to the massive entry of small personal devices into business and personal IT.

I'm making decent coin right now, doing custom training for an MS Gold Partner on Microsoft's BI tools. MS has done quite a bit with Analysis Services and Reporting Services for 2008 - that, coupled with the really cool stuff in PerformancePoint Server, means that I'm likely to be at the front of a training room for much of the next few years. Equally interesting stuff, and a little easier to see than a vague prediction that things are going to "completely change" in the next five years. ;)