Well if I had an unlimited (or at least much larger) budget I'd do it for stability and convenience reasons. A proper VDI setup would be much more stable because everything would run on high end server backends, and have full redundancy. The thin clients are quite cheap so we'd have extras and if one broke down we'd just grab another and slap it in the person's office.
Plus it would be very flexible. You could log in and get your desktop anywhere in the building, or indeed the world. So for the professors that have offices in multiple buildings there would be nothing to roaming their data or anything, because any station you used would be your stuff. Also you can do things like snapshot a user's desktop when you are trying upgrades and so on.
Flexible hardware wise too. So long as the back end is nice and powerful, people can be assigned a lot of resources, and that can be grown on a moment's notice. So if someone was previously just doing Office and web shit, but now needs to do Matlab simulations there's no waiting to upgrade the computer, just reconfig their node on the backend.
I think it would be quite a nice setup. As I said though the cost would be the issue. It would require very powerful quality servers, in a configuration that offered redundancy with failover, a fully redundant network, some very fast, reliable storage, and so on. It would cost far more to do it than what we have on desktops.
If we spent the same as we did on desktops the system would be unreliable without depth, and a failure would take out a large number of people rather than just one. Also net user experience would be worse due to lack of resources for the client instances.
It is a "do it right or don't do it" kind of thing. Do it right, you get a better more flexible environment, at a greater cost. However you don't get cost savings by doing it wrong.