It doesn't matter whether it's CPU or GPU rendering, the fact of the matter is that rendering more frames per second requires a faster response time by the hardware processing that data, physics requires quick reactions to calculate exactly where each portion of geometry will be because of the initial influence of say a bullet or something crashing into a portion of a scene.
Microsoft are yet to prove that the cloud can render even 30FPS when a player is sitting at home, running their XBox One, using the cloud servers miles away, even at Gamescom the servers could have been in the building, hell a PC could be packing over 20X the power of XB1 and be sitting on stage hidden away and an audience may not know.
60FPS requires each frame of an image to be rendered within 16.6ms, personally my latency on my connection is 123ms, that's something which is static and no tech provider can get around, unless you move the servers closer to the player.
