Hi Bill,
You have a good point, but unfortunately the X system is fundamentally flawed at the technical level for the purpose you describe. When X was originally developed, graphics were simple aliased lines and bitmapped fonts. In the modern computer environment, this has presented itself as a grave hindrance to the usability of X.
Modern applications depend on graphics toolkits, such as GTK and Qt, which render in to X pixbufs and finally those are rendered on the display. The process by which this happens depends upon copying these toolkit-rendered images from buffer to buffer several times, quite needlessly to fit within the X framework. This is moreso true over a network connection. The very nature of modern programs has progressed way beyond what X was intended and optimized for. It is like trying to use a MUD infrastructure designed for textual interaction as the basis of a modern GUI framework, it simply isn't the right tool for the job.
An anecdote, this weekend I decided I was going to work from home. So I ssh into my work computer (6 miles, 20+ Mbps connection), and fire up an X forwarded my graphical editor session. Things were slow, but not unusable until I did something that caused a series of tooltips to be rendered. The session locked up for 2 minutes before I killed it. I then fired up a terminal-based text editor and got to work. X's network transparency was not beneficial. But there are many network protocols that have been designed for the purpose of remotely operating modern GUI applications such as VNC and RDP. These have been designed from the ground up to provide the functionality we expect on today's systems.
And before I finish my tirade, I, too, was a die-hard X fan until I decided to see what the Xorg folks had to say. Keith Packard (a lead developer on Xorg, inventor of Cairo and much more that you depend on when you fire up your workstation), has been a hard proponent of Wayland. He's given many talks outlining the design failings of X and how Wayland resolves them. I recommend you google "Keith Packard Wayland" and see what you find.
Regards,
oursland