
"Where do you think this Hobby will be (in ten years)?"
I would say that in attempting to predict the future of our hobby it is absolutely necessary to look at what's happened over the
past ten years, as well as appreciating current trends and the state of our ecconomy, when prognosticating future developments in model railroading.
I would tend to agree that in a decade or so, DCC as we know it today, will be gone, replaced by on-board battery power and radio/wireless computer control. If anything, track will only be used to recharge power to battery on the fly, eliminating virtually all wiring. The need for battery development in the face of our current problems with oil will likely spur incredible R&D and undreamed of advances in that technology.
Don't look for locos or rollingstock to decline in price in the future. If the recent past is any indication at all, expect to see pricing continue to rise at a rate that far outstrips inflation. Manufacturing in China will undoubtedly become progressively more expensive in the future and it is unclear if any third world nation would be technologically advanced enough to replace them. My guess is that the "average" HO locomotive will retail for at least $300-$400 for diesels and $600+ for steamers. Locos at the market's high end (like those selling for $500-$800 today) will be marketed at better than $2,000 per, although demand will be declining, just as we've seen in the case of brass (which will be an extinct branch of the hobby a decade from now). The high end locos will be able to be purchased custom detailed to specific roads, perhaps ever specific eras or individual locomotives. Rollingstock of any quality will easily go for $50-$75 per. Needless to say, the better 2nd hand models from today will be in great demand.
As to "realistic" loco functions, like sound and smoke, look for the former to improve enormously but maintain its extra cost margin above silent models (no, silent engines won't go away, as many oldtimes don't like sound). Improved versions of more realistic smoke will undoubtedly be attempted by a few manufacturers but look for this feature to fail because of too many issues regarding health problems among operators and viewers (already mentioned as a problem at some train shows today). Also, expect track signaling to become an increasingly common feature on layouts. The possibility also exists for on-board video to return in a big way but this time interfaced with a home computer program that creates artificial backgrounds that are automatically blended with the layout's video scene, providing a truly real-world view with sky, clouds, appropriate distant terrain beyond the modeler's foreground scenicking.
For the more well to do hobbyists, pro-built layouts will become the norm. For the rest of us, partially or even completely finished (at a price), modest-sized, modules will be available.
Also expect that, as the number of Baby Boomers in the hobby rapidly begins to decline by the late teens, total hobbyist numbers will shrink steadily and organizations centered around craftmanship (like the NMRA) and RR historical societies (many already in trouble) could very well disappear for lack of membership.
NYW&B