Does that mean like playing games without having them installed? Streaming games? Maybe if Google Fiber and other such services become cheaper and more popular

The cloud already has some uses, but it's not a solution for everything. Uses where only bandwidth is the main requisite, while latency just needs to be not terrible, (for example storage, social network activities and many others) will benefit more and more from the cloud as time goes by, but uses where low latency is of the essence, including increasing computing power for real time tasks (for example game engines and currently active levels), won't receive benefit neither in the near nor in the distant future. An exception about game engines could be making the cloud manage the partts of levels and game worlds that are currently out of reach for the player, that must be visible and even active, but not interactive until the player gets closer. Also, online games already are affected by latency, so while the game client engine will always run locally, game worlds will be more and more often managed by the cloud instead of classic central servers and server farms.

Yes, to some degree. But not in the way Microsoft says it will be.

I can see it being used to improve online games and to introduce backwards compatibility or the streaming of certain games.

Yeah, looks great XD

For me, it's too soon to say, but I will keep my eyes and ears open. At this point I am not too concerned really. I'll wait it as it unfolds.

Cloud lighting is so weird in my opinion. 5 years ago I would have had no problems with it but now that we are moving away from pre baked lighting to real time, it just seems so backwards.

Depends on the expectations of what The Cloud will do

We already use the cloud in gaming. But some are saying The Cloud will make a console 10 X more powerful. Does that mean games will look 10 X better? Does that mean the game will be playable if suddenly the cloud stops working? Will it end session or just frames for a few seconds?

Honestly some keep throwing out The Cloud as a great positive for this console or that console, yet they don't explain at all what exactly it will do. So I remain cautious about believing in the Cloud for anything beyond Saves, Matchmaking, or other things The Cloud currently does

"The Cloud" is the new "teh C3LL"

I think currently it is too dependent on a connection. If developers make the game to use The Cloud and then for whatever reason it cannot be connected to, what happens to the game? Is it unplayable? If it's a single player game... well.

Theory is good, I can see the potential but for now it's best kept as 'storage', I feel, unless it's used for online part of a game, obviously you need to be online for it anyway.