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S.T.A.G.E. said:
The Fury said:

The idea of the streaming thing is you don't even have to own a Hard Drive to play it, until recently you could use the service through a TV and only a TV.

That's not saying this product MS are offering won't be good but all services have their benefits. If streaming was such an issue for people, Netflix would never have been successful. 

Steaming is good for shows, but not for games which can be buggy and not hold a stable frame rate, even if streaming because of file sizes. Downloading today is still the safer bet for gaming with the majority of gamers. Sony will always have a better selection than Microsoft, but Microsoft opted for emulation, which was smart. It gives you cleaner access.

Downloading is indeed much better than streaming.
Streaming produces lag, video quality isn't nearly as good and even worse when you got a shitty or unstable connection (wired connection pretty much required), can produce just as much data traffic (depending on playtime) as a full game download, needs an internet connection at all times.

and yes I've personally played games that have been streamed to my PC. Although I wouldn't even try to stream a multiplayer game.