All good points. If you want to this to work across devices, you'd need something like a relatively standard 'browser' on the frontend (and perhaps that could even be the normal webbrowser souped up a bit.)
And for best effects, of course, you'd also want to get support from the game itself. AI coding will make this part easier, because there's probably relatively common techniques you can apply to your games to get most of the benefit.
Just to be sure: I'm just outlining what could be done to make remote gaming viable, even with the latency constraints. I'm not saying that this will definitely happen, nor that it's even particularly likely.
Perhaps even low end local devices will just be fast enough to give people good enough games anyway. Nowadays even phones are capable of astonishing feats.