Before they even launched the PS3 Sony was talking about cloud computing as the system's future. Obviously they are going to try to make sure no one is going to steal their thunder before they pull it off, including dismissing competitors attempts.
But the fact of the matter is, they are correct. For the time being, the service is simply not reasonable. Many people cant maintain those dl speeds consistently even when they can hit much higher levels at peak, and many more don't even have that kind of bandwidth to begin with. Also, as was mentioned, the servers to actually play all of those games remotely will be very costly.
When Sony comes along with their own service, they are going to have many millions of PS3s installed in homes and they are going to steal unused cycles from those machines. It's the only way they could afford to do it, and to be fair if Sony couldn't handle the costs of completely server-side cloud computing on that scale then how in the world do these OnLive guys think they can?
You do not have the right to never be offended.
