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Well, here's what I think: I think this isn't gonna work. Simply because the economy is in a very hard time and when onlive comes, Sony and Nintendo (and Microsoft, but less) won't sell any hardware or software anymore. So they don't get money and more and more people are going to be fired.
Also will there be no more competition between companies, so the producers of Onlive can ask a very high price for their system.
Furthermore, Onlive asks to much of your internetcapacity, so you don't only pay for your Onlive-system, but also for your internetconnection.

In any case, I don't think this is gonna work. Not that I don't want it to work, but if you look at the economy now and look at the advantages and disadvantages (like the internet or the price), I think there need to be taken a few more steps to make this a success.