OnLive sounds cool, but it's a little hard to believe, since latency is a common issue in regular gaming already. Demos are invariably carefully orchestrated. The other thing that gives me pause is that it is such a compelling vision for publishers. It's an absolutely magic idea. However, this enthusiasm is not technology-driven: it's not about what has become possible, but what would be really amazingly cool if it was possible.

But latency isn't such an issue for compiling etc. Someone was saying in the instant google thread that 250ms is imperceptible for search (and I've heard 200ms for the command line, from Rob Pike on Go). That's much lower hanging fruit than for gaming, where 250ms latency is far from instant but unplayable.