Let's not go into a discussion on asics / 64-core cpu's, but I'm pretty certain that hardware including tcams etc will keep up if the market demands it.
Oh, do let me briefly touch on this tangent; I think your statement glosses over the worry which has been expressed. The problem is this: so far "hardware scaling" of core routers has been riding on the coattails of general advances in electronics, driven by other and larger forces (PCs etc.). However, there is apparently no general market demand for "much, Much bigger TCAMs". This means that such components will be costly at best, maybe more costly than any of us would like to think of, and/or that they may not arrive as quicly as when we have the assistance of other market forces which pull in the same direction. I tell you, widespread PI adoption is poison for the network. Just saying. So that I can tell you "told you so!" Regards, - Håvard, in a pessmistic mood