@Ixiohm: that blog post appears to nail what the tradeoffs of OnLive are well: it's selling software as a service. That may seem outrageous at first, but think of movies: when you go to a movie theater to watch the movie, you don't own it. Same with netflix and hulu. It seems a fair deal (as long as software as a product doesn't go away).
Also, up to this point, i didn't think that there would ever be a complete takeover of cloud computing due to certain high-resource-intensity and low-latency demanding programs needing a local PC, but this service (will take) just took away one of the major classes of those apps
Just musing here, but i don't understand why they don't make the client slightly thicker: install a bare-bones UI package for each game (maybe a few megabytes), then run the interface on the client. That wouldn't really add overhead, and would turn the overall time-delay problem into basically a lag thing (which at least RTS gamers are used to dealing with).
It's also interesting to see how people are either "i think onlive should sink and show everyone that cloud computing is not for games" or "it's gonna be the bread and butter of everyones gaming in a few years". I don't think it will be this way (some people will still want total
paranoid control of their stuff
), but there is certainly a market for it.