With a decent internet connection I now struggle to see why anyone would want to buy a hardware Xbox. Games on the cloud version load instantly, play brilliantly and cost the same as the usual Game Pass as far as I can tell. The catalogue seems smaller maybe but aside from that I see little downside.
I could see it working well for PCs too - as long as the terminal device is seamless. I guess us devs have been renting computers in "the cloud" for decades anyway.