There are only 2 reasons MS is pushing the Cloud so much.
1. It's something for them to fall back on when the PS4 proves to be able to pull off superior graphics. Then they and One owners can spout how the graphics will improve greatly on the One because of the Cloud, while the PS4 is stuck with its internal HW.
2. And this is the most devious reason. It's pretty obvious that the One was originally designed as an always online console. However, because of all the backlash, MS dropped it to once every 24 hrs. This is still horrible, but doesn't seem so bad. But, we will start to see games that "Requires The Cloud" (apparently, Forza 5 and DR3 are two titles already) so they can justify an always online connection.
Of course, in the end, this is just PR nonsense. Cloud processing is not going to improve your power very much. Not when you have to deal with internet connection speeds and HW latency. I believe several sites have pointed this out as BS, as well.
It also makes me wonder, since some people were saying the One demos at E3 were run on laptops, and not Dev Kits, what kind of HW was in those laptops? Was it designed to simulate the theoretical power that MS says can be obtained from the cloud? And will the final products look as good?
