hm lets see how can we capitalize on this, oh shucks i'm in the UK not the USA 
Surely at some point we will have to look into going DC ? although that makes transmission nearly impossible but I've heard of it done.
DC transmission can be done, and in fact extreme high power distribution is already going to HVDC because the capacitive losses start to get ugly when you go above 1 MV or so. Doing so also helps grid phase stability by breaking loops -- the input and output phases of a AC -> DC -> AC transmission line can be independent.
I am sure we will soon see DC used in the mid level power distribution as well. However, it is still going to be difficult to do that for the last mile. Transformers are essentially bulletproof compared to a switch-mode voltage converter. If you want to install something that will run for 50 years with no servicing and survive wind, rain, snow, and 40C heat and not be knocked out by nearby lightning, transformers are your best bet. Furthermore, if you think the power quality we have now due to all these SMPSs is bad, wait until your local distribution station is replaced by a bunch of switch mode converters.
I mean what linear loads are there left on the grid ? the few remaining incandescent light bulbs, halogen bulbs, motors (I think) and the few devices with a 50/60Hz power supply transformer in them although i bet even those are far from perfect. But with SMPS's powering anything that does not use AC directly including energy saving bulbs I can't see we have a much option eventually
There are still tons of transformer powered devices out there, and AC motors are kind of the backbone of a manufacturing economy. A lot of fluorescent bulbs still require AC. Make no mistake, the cost of transitioning end user electricity to DC would be astronomically expensive. Even as switch-mode converters become more common on the utility grid, I think it will be 100 years before there is a major shift away from AC power distribution even if it means the last-mile converter will just be a DC-AC inverter.
I am really not excited about the prospect of DC utility power for a couple of reasons. The biggest one is that with AC the current is interrupted every cycle. This makes things like fuses, circuit breakers, power switches, and power outlets intrinsically safer as it is much harder to sustain an AC arc than a DC arc.