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Mr Puggsly said:
KingdomHeartsFan said:

The people in the video even say themselves the lag makes the game hard to play, even the biggest xbox fanboy at IGN, Ryan said so.  

Your argument is too black and white. For games where timing is crucial, that fraction of a second lag might be an issue. But for most games, its not a big deal.

I beat several games using OnLive, a little lag does not cripple most games.

Sony bought Gaikai because they know a little lag is tolerable for most games. Bear in mind cloud gaming has more lag.

I'd say most games the lag is important in platformers, shooters, racers, fighters, etc.  I don't see it being significant in games like turn-based/strategy RPGs.  Also idk about onlive, I've never used it but I found this http://www.youtube.com/watch?v=o-zu9VHWb0w, input lag looks nonexistent, not anywhere close to this.