CLOUD GAMING is not good at all. There is a problem with p/p put away many gamers. Onlive, fail long time ago and now there is nVidia try to tackle this cloud gaming too.
Its all about scaling, when internet was invented it would crash if too many people tried to visit a forum at once. Then when email was invented the internet was not ready!
Later you could add attachments to emails and people were freaking out the internet would crash because it couldnt handle the traffic. New ideas force technology to Scale.
Cloud gaming will scale too