Like all technology this will take time to exploit. I do believe in cloud computing as it's not some unrealistic thing. It's just too advanced right now and might costs a lot of money to operate.
People on the internet want things done as soon as they hear about it or they will immediately consider it non existent, heck this cloud computing thing is not a MS only research it's coming from other companies and other segments too.
There are multiple problems with cloud computing though. Bandwith is the main concern (I live in Canada and we have the shitiest bandwith possible) as cloud computing and even cloud streaming won't take off for a long time.
But seeing as MS can't do anything good, maybe they should've kept their mouth shut and keep developing until it's ready... just like DX12 which was announced like 2 months ago and they clearly stated that the first games to use it would be towards the end of 2015... people still brag about it's non existence as of today... like we're already at the end of 2015... logic am fail.
