I've been hearing this for a long time. Thought I doubt tenure is going to completely disappear anytime soon, I wouldn't be surprised to see some system-level changes in our lifetime. I have mixed feelings on it - it can allow more freedom to take on high-risk exploratory research, and/or study controversial topics without fear of repercussion. Job security is obviously a personal plus, but arguments could be made either way for the net effect on the system as a whole. Obvious downside is that it can cause dead weight to fester and some folks certainly seem to take advantage of a level of job security not afforded in most any other field. Some faculty seem to confuse tenure with retirement.
Note that this is not the same thing as everyone being adjunct faculty hired by-the-class for near minimum wages. Medical centers frequently grant tenure in name only (i.e. you are tenured, but you still need to cover your salary with grants or other activities). These often pay as well or better than many tenure-track jobs, and from what I can tell seem far easier to come by.
