Fumanchu on 23 November 2008
Sure I don't doubt that's the direction Microsoft wants to take, it makes sense to them for all of your aforementioned reasons. However, I still don't think WW the infrastructure will be there to support it, it's too reliant on your Internet connection in the ways you're suggesting - streaming games to cache, if your Internet goes down for whatever reason be it maintenance or router/modem dies or your speed is capped you can't even play games you've purchased...I would be incredibly frustrated.
On a side note; should all the games consoles adopt this method what happens the game retailers...ouch!
