That's what Citrix were doing in the enterprise space back in the 1990s. And yes, it felt like magic back then, but it was expensive as hell. I think that's the reason it didn't become "mega" successful. The technology itself was great. I'd demo it to management, they'd get how it made my job easier and allow people to work remotely, but the $$ investment in licenses and servers would immediately shut the conversation down. They'd use it in certain places, like if they had a very old / very new / very hard to configure app, they could just stream it into regular Windows NT machines. They weren't brave enough to shift desktop budget to thin clients and repurpose the aging desktop fleet into dumb Linux terminals. (And actually, the whole Microsoft Client Licence made that almost as expensive as running Windows clients).
Some companies dipped their toes in the water, but I never found a single company that went all-in.
In 2010ish I worked briefly in a school in the UK (ages 11-19) which had 3 or 4 racks of servers running Citrix XenApp, serving Office etc. and general educational and administrative applications to ancient laptops and desktops which had been (very inexpertly) reconfigured as thin clients.
It ran like crap (probably didn't help that re-provisioning a server was defined as hot-swapping disks around and running NewSID or whatever it was called) and of course in large parts of the school the WiFi just wasn't quite good enough. I got a lot of calls from PE teachers trying to take the register from the far corner of the playing field.
It was an extreme case of CV-driven development, I was brought in to backfill when the IT manager who had introduced all this walked out one day. He stood up at about lunchtime, grabbed his coat and said "I'm going now". The team thought he meant for lunch...
By the time I was leaving under a year later, they had brought in another IT manager who (rightly!) said "what's all this nonsense" and rolled out proper clients imaged with MDT.
Some companies dipped their toes in the water, but I never found a single company that went all-in.