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Diablo 3 is not a good advertisement for enhancements by cloud computing. It was a big downside to the single player gamer. There is a crack out now that let's you play the game off-line.
Same with Sim city. Let me save, burn the city down, restore. And instead of bigger cities, you get a fraction of the size to play with compared to previous games.

I think it's a pipe dream. I still have regular connection hick ups and only a choice between bandwidth capped cable or max 5 mbps phone line. And no plans whatsoever to bring fibre here. Maybe in 10 years things will be better, and hardware will be a lot cheaper to actually have a single player mmo running for a million players on day 1 without problems.

Btw Fable pipe dreams can easily be done locally, all you need is a hdd. Updating world stuff for the time you have been gone is nothing new either. The scope can be much bigger with cloud computing, yet the bigger the changes, the bigger the download size as well. Personally I would prefer to find my world back the way I left it when I pressed save, but that's just me. (Keep it synched with the character's time frame)

Let's continue this discussion after E3 with hopefully some actual examples.