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I tried out a trial of AVP today with OnLive. It seemed to work but I did notice a slight bit of lag. I don't think I'll be using the service until it become more established and internet speed go up a bit more.

The list of games at present is also a bit mediocre. It'll need to build up a lot more before they start bringing in new users. Not sure the pricing scheme is quite right yet either. 

Personally, I think it's too early, but I do think this or something similar is the future. OnLive at least seemingly have a head start on everyone else. I'm not sure they'll last long when Sony, Microsoft, Ninty and Valve decide to try it out though.