But I imagine (as with online gaming systems) that the experience is much more like... server loads the necessary rendering resources into the devices RAM/storage and then gameplay occurs the same as if files were loaded from a CD/other media.
I'm sure you could learn more by digging deeper but I imagine it is something more along those lines -- advanced API for a rendering engine.
I believe that's exactly how Onlive works.
If streamers could maintain 30ms of network latency then it's just a minor difference from the system baseline.
If the streamers are smart they could colocate with the game servers. Then that 30ms of network latency is there regardless, home system or streaming system. It effectively adds no lag for streaming.
John Carmack made a comment that he could send a packet to europe faster then he could send a pixel to a screen: http://superuser.com/questions/419070/transatlantic-ping-fas...