Example of increase in BW capabilities:
DVD vs Blu-Ray.
Although not a perfect comparison, Blu does use a shorter wavelength, allowing smaller data nodes on the recording media and thus increasing the data density.
Something similar for transmission signals, but moe along how many times you can (I think) blip it on and off in a second? Or does digital work more on changing the wavelength slightly but using a digital transmission language.... ?
Think of this though, we are only talking visible light here. With improvements in fiber optics, higher frequency light can be used (UV? Gamma rays?). Also, there is no, shoot, I just had the term, lag time? In the response (magnetic lag? Ah, Impedence!) with fiber opticsthat I know about, so it has that advantage over electricity as well.
The only advantage that wireless has, aside from mobility, is the lack of need of solid infrastructure. In places like cities it should be theoretically possible to service enough people with wireless within one transmission circle to make it cost less than wiring up those same people.
The same goes for cell phones.
It just gets impractical when your range is 50 miles for a tower and you only have 100 people living in that radius (Nevada?) OR you are SO concentrated you get crossover/echos/reflections (NYC, Midtown).
A better question for this would not be wireless replacing wired, but internet replacing phone and television.......