Don't worry, the cloud is not sick or going to die soon.
I am still playing around on Terminal.Com, and this time I take Ubuntu 14.04 out for a spin. While the XFCE post highlighted Ubuntu in a GUI, where Terminal.com really shines is on the CLI interface.
In this video I am running a snapshot of Ubuntu 14.04. It is running with 256 MB of ram and a 10 GB hard drive. Thus far I installed Nano (word processing) and Alpine (mail app), and plan to install my favorite CLI application Htop.
The power of Terminal.com is creating a "distro as a service" to carry out very specific tasks. Lets think of a current issue we hear about, well Chromebooks are great but our math teachers have used this one app for years and it requires java. You could create a terminal with limited GUI yet runs java that can be run inside a Chromebook.