To continue that line of thought: such improved LED efficiency also means that a same output light can do with a smaller battery, have longer runtime, or higher output with the same battery. Everything better yet if battery tech improves as well.
How far the tech
could go, depends on how far away it
currently is from theoretical limits. For transistors, those limits consists of how small structures can work as a transistor. With limits being
in the order of structures a few / a few dozen atoms long or wide. That's still a number of steps away from the 45 nm. or so that current CPU's use, and a loooong way from where semiconductors were 20 years ago. Hence Moore's law etc.
For LEDs, current tech is already significantly on the way to what's theoretically possible. So beyond today's 150 or 200 (?) lm/W for white LEDs there can be some more improvement, but for example a x10 gain in output won't happen anymore, ever. Period. Heat losses could be reduced, but (since light = energy, which can't be created from nothing) at some point there's no getting around that more light output requires more energy input.
I think biggest room for improvement is in battery tech. Energy density, safety, durability etc. are all things that potentially could be improved
orders of magnitude.