Yep, that's a deluded fantasy all right. See "Ultimate Resource 2", "The Resourceful Earth", or "State of Humanity" by Julian Simon or "Earth Report 2000" by Ronald Bailey.

Silicon makes up much more of the cost of a computer than copper, its not even close. Silicon is >50 cents a gram, copper is less than a cent per gram.

Yes, but I can't imagine any realistic scenario where this performance will start to backslide. The rate of performance increase will continue to slow down, and the number of cores that you get per unit will increase, but "the hardware" in the most general sense will keep getting faster and cheaper over time.