Silicon is hard and brittle so electronics needs to be packaged in a rigid system. We envisage a future for electronics where simple circuits and displays can be printed onto paper, along with a battery or solar cell. Combined with better sensors and wirless communication between devices, this will let us engineer a world where everything we use can work with us and respond to us. Exactly what materials will do this, we don't know. Read up on OLEDs, pervasive electronics, RFIDs, and printed batteries, for instance.
Soft electronics (PDF)
EDFGC 2011 Paper (Graduate Students Research on Conductive Textiles, PDF)