rolf wroteI think sound mixing moved from the hardware to the cpu because its cheaper this way.
But I still think real evolution comes from the hardware. Software evolution might be nothing but bug fixing and constantly improved icing on the cake.
I think this is a bit too extreme rolf. hardware and software are two sides of the same coin. In one hand , you need good, reliable hardware to be able to run software and you need more powerful hardware to run more complex software.
However, coming from a software background, it is not only the advances of hardware that made computers today as fast, reliable etc... as they are. The whole science of algorithmics and designing algorithms have contributed a huge deal to this advancement. Just a small example, finding the algorithm that solves the following problem "Given a set of points in the plane, find the closest pair", has evolved the computation time from O(n^2) to O(nlogn) and that is speaking in 2D. Now, this actually means in practice that given millions of point like in a GIS system processing went down from a few days to a few seconds. THAT IS SOFTWARE.
But still I agree how many instructions a hardware can process etc... has made things faster and feasible. As for getting hardware solutions for problems, it is indeed too expensive.
Software also contributes in bringing technology to the masses, like for example if GPS was a pure hardware solution, no one could have afforded buying one but since it is mostly software algorithms it really costs nothing to implement, upgrade etc... and it becomes cheap.
Anyways, I hope you get my point.