I do not think our theoretical models diverge from reality; the theoretical models are based on how the performance relates to the size of the input, and remain valid even if you have a very fast computer. What modern architectures have done is to change the constant factors a bit; that just raises the threshold for problem sizes, but it does not eliminate it.
Sure, there are cases where asymptotic analysis can be dismissed. Matrix multiplication comes to mind: the fastest algorithms have impractically large constant factors. Usually, though, asymptotic analysis does matter, because it is often the case that input sizes will grow unexpectedly.
Sure, there are cases where asymptotic analysis can be dismissed. Matrix multiplication comes to mind: the fastest algorithms have impractically large constant factors. Usually, though, asymptotic analysis does matter, because it is often the case that input sizes will grow unexpectedly.