When I started running the WR was 2:09, and people were shocked that the 2:10 "barrier" had been broken. Now 2:05 isn't even in the top ten performances. Until a couple of years ago I'd assumed 2:00 was impossible, but seeing how much has been chopped off in just the last ten years I have to say it's going to happen -- maybe not for another 10-20 years, but it will.
Honestly, I think I have a harder time seeing a 3:40 mile than a 2:00 marathon, given the lack of progression in the mile.