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The idea is good but i don't think it's going to take off.
PS3 games are still too fresh to be something worthy of investing money in. Had Sony offered PS1 and PS2 games... now that would be a different story!
Some people wouldn't mind reliving games from their childhood or youth; overall, a much better proposition.

Are people ready to stream games with the danger of delays and hiccups?
Hiccups in a movie... acceptable. There's no interaction.
In a game? It matters and i don't think that the majority of people have the broadband connection required to avoid that.