Sure, we can still get K parts and go for 5G on water or whatever, but is there any need to overclock anymore? Frankly I don't see any difference in day to day tasks between a stock and an overclocked SB anymore, even in games. Personally I feel the core2 duo/quad era is the last hurrah of overclocking, where gains are huge and perceivable.
Ah, the "fast enough theory" (the positing that CPUs are fast enough already such that faster ones don't matter). The thing is, with faster processing you can do more impressive things. Software will continue to evolve, and every year software demands more. And besides, people don't like waiting. Sure, surfing the web is fast (although it could still be faster!), but how long does it take to install a big program? how long does it take to encode a 2 hour HD movie? Many areas have huge room for improvement.
However, software demands doesn't increase as fast as hardware speed improves. This is why some of that extra speed has been sacrificed to cut down on size, cost, and recently power consumption as well.
Consider that once computers were room sized, took a very long time to perform the simplest of tasks, and were extremely expensive. Motherboards are shrinking to uATX, HDDs are shrinking to 2.5" SSDs. Components are being integrated into the CPU... But there is still so much more room for growth. Software will continue to grow in demands, and hardware will continue to out-pace it, and hardware will go down in cost, size, and power consumption as a result. But we are a long, long time away from a cellphone sized device running high definition games at photo-realistic quality.
And it is quite possible we would never get there, eventually miniaturization cannot progress any further. This will drastically reduce progress rate, and it will get harder and harder to design better architectures. Software will probably continue to grow in demands and we will see computers increasing in size again.
Beyond that point it becomes very hard to predict, but that point is already many decades into the future.