Yes it seems interesting, they could probably run Resogun at 30fps with this thing :-/ so many particles!
More seriously, their cloud computing was probably using GPUs and running on a LAN (you know... 100 times faster than most internet connection, very little lag) and well, it also runs at only 32fps... and you have not touched the controller, it would feel off if the delay was too long (you can render locally at 32fps, but the effects could be deffered by a few frames (1 frame at 30 is 33ms... if the interactions are 3 frames below you are almost at 100ms, which is enough to make it feel "off".
But hey, if I am wrong we are in for some amazing things... I would just not count on it until there is a critical mass of people with connection above 100mbps, maybe more depending on the number of objects they want to move around in a given frame, and you have to think that if they did not sell you the machine to run these simulations locally, nor the electricity to run it, they will want to recoup that cost somewhere, no game will let you play day in and day out with effects that require the equivalent of two or 3 titans GPU to render in real time without asking you to pay some monthly fee (and that kind of computing is not happening with the 300 000 "servers" they advertised at first, many more will be required for 4 million people to play...