The killer feature of services like Netflix is not really the "over the internet" part, it's the "watch any show on demand" and "massive library so you can start watching from S1E1, if you want to". Streaming live TV services fail at both of these.
CloudDVR I guess kind of gets part way to on-demand, but in a frustratingly stupid way. Clearly, the service just has a single recording of every show from every channel. If a subscriber clicks "record" all it is really doing is opting them in to access to future recordings. I assume people can't get access to old recordings (then it would just be "on demand", not "DVR"). Are there also limits on how many recordings you can access (emulating a limited size hard drive)? Do recordings go away after some time? Does it also record commercials, and does it allow skipping?
Everything about these just seems like a relic of a by-gone era. They've even added artificial limitations to emulate the old actual technical limitations. The only real thing they have going for them is access to content not available on other streaming services, Otherwise everything about a service like Netflix seems to be superior in every way. If Netflix (or similar service) had live sports streaming and all the other shows, even at the same price as traditional cable, my guess is the cable industry would be dead within a year.