Did anyone hear about Microsoft wanting to make Windows 8 a 128-bit OS? Lol...

Heard about, but unless there's actually a 128 bit processor to make the OS for it's not possible. They could make it for a theoretical processor and then hope Intel or AMD invents it someday, but that seems silly.

There are certain computer components that advance much faster than we actually have use for them. Most of the time some other device bottlenecks what could be done. Perfect example is internet speed bottlenecking a routers wireless speed.

Another example is slow harddrive speeds bottlenecking the badwidth of the cable that transfers the data (usually SATA).

I doubt it. They were probably talking about 128-bits of filesystem address space (which Solaris has, for example) which is useful in enterprise as every user and device can have its own 64-bit of virtual address space which apparently reduces coding overheads on certain software.

--

Modern x86 processors would not benefit from external 128-bit memory addressing. Internally, the SSE registers are already 128-bit.