Outside of most FPS and some really tight-action platformers streaming pioneered by OnLive is more than enough especially for the casual gamer.
When OnLive was operational I had no trouble playing Batman (something something Arkham?) on their American servers from a MacBook Air in Sweden. I had a similar experience later with LiquidSky which was running regular games downloaded from Steam in their cloud and streaming video to my laptop.
If they do cooperate on creating a similar service, this will definitely be a net win for the gamers.
However, if that's what happens, and if the service is successful, we might end up seeing less games tailored to run on the console's hardware with low latencies, and we'll end up having cloud-optimised games (much like we have mobile-optimised games now). But this is pure speculation at this point.
I remember using Gaikai a bit. It was quite usable with non-reflex based games like From Dust. But that's quite common these days. I sometimes RDP over wifi to my gaming PC when to lazy to transfer saves for games like Factorio or KSP.
Still I have a hard time imagining first person games, since I despise those with significant input lag. Even just on a local PC some games have a horrible delay unless you run very high frame-rates (quite a bunch of those Unreal Engine) and I always have a hard time getting into those.
Now with an additional 20-30ms network latency... for this to be close to acceptable, they would have to get the on server delay close to nothing at the very least. I doubt that will happen while games are still release on multiple platforms.
The casual gamer is perfectly happy with cookie clicker or Fortnite on mobile. 2D games should be able to run on almost any platform and 3D games can be toned down until they run well too. The only type of gamer that isn't served by the things above is the "core" gamer that wants high fidelity 3D graphics and real time experiences. Really the only need that streaming serves is to make DRM possible which means the companies want to have complete control over the user experience and they certainly are going to abuse that control as much as they can.
Most 3D games don't even have to be toned down. Because if you stream video, you don't care if you send a video of a 2D game or a 3D game. And that's the main appeal of such services: you don't need to spend large sums of money to be able to play modern games in high or ultra high settings. All you need is a beefy internet connection with low enough latency.
When OnLive was operational I had no trouble playing Batman (something something Arkham?) on their American servers from a MacBook Air in Sweden. I had a similar experience later with LiquidSky which was running regular games downloaded from Steam in their cloud and streaming video to my laptop.
If they do cooperate on creating a similar service, this will definitely be a net win for the gamers.
However, if that's what happens, and if the service is successful, we might end up seeing less games tailored to run on the console's hardware with low latencies, and we'll end up having cloud-optimised games (much like we have mobile-optimised games now). But this is pure speculation at this point.