There's no such thing as unlimited or infinite, there is however ever expanding and within the physical limits of your hardware's Ethernet port capabilities to receive data.
The Cloud is also limited by the costs of the infrastructure. You're not going to have access to limitless performance because the hardware has a physical cost attached to it and Microsoft or any provider isn't going to give each user access to more tech than that player can afford to pay for the use of.
So far Crackdown 3 is the only example of a cloud based game running on Microsoft's Azure servers and even then every example has been in a controlled environment, on stage at games conferences, not actually in use even in an Alpha test accessed by real world gamers.
Crackdown 3 isn't doing anything that hasn't been done by another game that also uses heavy Physics compute, I am of course talking about Just Cause 3. The level of destruction in Just Cause 3 is highly extensive, with fine grain compute being shown, all the way up to large scale events.
I'm not sure why you'd link to a youtuber, as apposed to the article The Red Dragon sources in his Video.
So far I see no proof of the claims that The Cloud is capable of what it's proponents insist is possible, nor is it logical for Microsoft to give each player access to thousands of dollars worth of hardware.
XBL Gold doesn't pay Microsoft for the use of servers required to even add half an XB1's performance to each cloud assisted game, not when they want to make money from this technology.
All I see here is claims with no proof.
