This is absolutely true, but it doesn't mean the product doesn't have it's place. I for one don't particularly want to get involved with the "gaming PC" consumption game, but I sometimes would like to play a AAA game I read about. Playing a game through a stream on someone else's gaming rig seems like a good way for me to do this.
Of course, what would really be interesting would be to setup a city-wide pool of gaming PCs and pay your neighbor to remote-pilot games, with low latency and keeping the spend local (and distributed). Think of it like "AirBnB for Gaming PCs". You could cobble something together today with VNC.