No. The latency isn't just in the game like if you connect to a high ping server, there will also be some delay from when you move your mouse to when the screen changes. This is one of the reasons competitive fighting game players say never practice online. You're gaining useless muscle memory.

Click the button on this page and it will tell you the latency to every AWS datacenter:

http://www.cloudping.info/

For me (London) it looks like I could get a latency of 28ms if I hosted my rig in their Dublin datacenter, which sounds OK. (But obviously this would be on top of the ping to the multiplayer host, if you're playing online.)

From a pure network connectivity standpoint, you're essentially looking at a bare minimum of ~two frames of latency (about 30-40ms), ignoring additional latency added by video compression/decompression. So, probably not going to be useful for competitive FPS play, but for most games it'd be tolerable, if even noticeable.

Any latency between AWS <--> Home will become hardware input latency. Which nothing can compensate for, you just react that much slower. Furthermore your hardware input latency is variable, so you'll never be able to from muscle memory.

The post suggest ~60FPS limit, which isn't competitive really at all. 120-144FPS is the standard for competitive play currently. If you encode at 144FPS, and decode at 144FPS then you already have a GPU that supports competitive play, so cloud platforms become moot.

From my experience with a ping of 60ms to ireland games like GTA5 or Crysis2 where playable to a point where you would forget that you are streaming. I tried to play Counter Strike online but for some reason even without any professional aspirations I felt kind of handicapped. For Strategy it worked quite well though.