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Game streaming like Gaika is the more efficient way. It takes much less information to only stream video and audio. More importantly you only have to upload controller input instead of all the information you want to get calculated, and upload speed is much lower than download speed with most connections.

Machiavellian said:

1) The streaming games are 720p@30fps due internet restrictions... to 1080p@60fps you will need a internet that 99% of the users in the world haven't yet.

I do not understand what you are saying.  Netfix MS video service and many more can stream a 1080p compressed video, why would MS not be able to steam the game in 1080p at 30FPS.  Who said they needed to steam at 60FPS??

I can explain that for you, it's called buffering. The video is simply being loaded while you are watching it, and that's possible because the movie isn't going to change during playback. They can't buffer the actions of a player now can they.