I don’t know enough about the science to tell whether this is a significant step forward in neural-interface systems, or just the specific potential of neural-interface systems to aid paralyzed individuals, but this report from the NYT is encouraging in any case:

Two people who are virtually paralyzed from the neck down have learned to manipulate a robotic arm with just their thoughts, using it to reach out and grab objects. One of them, a woman, was able to retrieve a bottle containing coffee and drink it from a straw — the first time she had served herself since her stroke 15 years earlier, scientists reported on Wednesday….

Scientists have predicted for years that this brain-computer connection would one day allow people with injuries to the brain and spinal cord to live more independent lives. Previously, researchers had shown that humans could learn to move a computer cursor with their thoughts, and that monkeys could manipulate a robotic arm.

The technology is not yet ready for use outside the lab, experts said, but the new study is an important step forward, providing dramatic evidence that brain-controlled prosthetics are within reach.

I think there is a non-trivial probability that future computer interface using only our minds will be popular (I don’t think whether it will be possible is much of a question anymore). I’m not sure this will replace current inputs entirely, as the telephone did to morse code, or just compliment them, as the mouse did to the keyboard. In either case I think it adoption of such technology will go hand-in-hand with the continuing integration of brans and computers. Psychologically, I think controlling computers with your mind will make computer memories feel much more like actual memories, and will blur the line between the two further.  After all, having no manual inputs means the entire process will occur internally with the appearance of moving parts in the real world: simply think what you want to know, and have what you want to know appear floating in front of your face (augmented reality). I predict this will feel very different from even just waving your hands in the air Minority Report style.

ADDED: Mark Thoma has what looks like a very interesting video on all of this from the Milken Institute. Fast forward to around the 50 minute mark for some amazing footage.

ADDED II: From MathDR in the comments, apparently Doc Oc will be real some day:

I spoke with the DARPA program manager regarding this project (this was a while ago) and I remember his statement about the impact of this research: Basically when doing experiments on monkeys with no impairment of limbs (they constrained the monkey arm with a sling to inhibit movement and force it to use the robotic arm), the question was what would happen then the sling was removed.

The monkey responded by utilizing both of its arms normally AND the robotic arm as a THIRD arm. This implies (extending to humans) that we would be able to *extend* our anatomy to multiple appendages and maybe even other toolsets (surgical tools on the end of appendages, etc.)