Why would you separate the two?
So you can have the option to stream and to play games physically? It doesnt work like that though....
No, I mean the cloud handles CPU related tasks. I can imagine the reason why there is so much latency in regular streaming is because of the graphics.
In a perfect streaming world... the graphics on display is irrelevant. What is relevant though, is the actual video bandwidth and the time it takes to connect with the server hosting the game and the client.
Those are the only two real hurdles faced by every game streaming platform ever and that will face anyone that tries getting into game streaming. The rez on display (doesn't matter what kinda graphic you are pushing) and the framerate results in bandwidth required.If any of those tw0 variables ges up so does the bandwidth.
Then you have the latency, this comes down to a number of connection thing. In a typical set up (local hardware connected to display) you have (1)a controller sending an input to hardware, (2)hardware sending video signal to TV/Display, (3)TV/Display outputting signal. And that's it. Now every connection point listed there has its own contribution to the overall latency. Even doing something as little as switching the controller type in (1) between wired and wireless, increases or reduces some latency.
With a streaming service: you have (1)input being sent to server and (2)server sending back video to client. Thats it..... Sounds simple enough doesn't it? Te issue is that with regards to streaming each of those points is a lot more complicated. Lets just take (1) for instance, what's the connection speed and quality of the client (do you have enough bandwidth to get decnet rez and frame rate and is the connection strength strong and stable), how many points (local processing hardware like laptop, android tv box, chromecast, your house router, ISP....etc) does that input bounce off or go through before reaching the primary host (stadia in this case) and then there is now the "road back" issue which is something local hardware has never had to deal with...... to even see the result of that input.. it pretty much has to make a round trip from you and then ut t the world and ten back to you and your display.
And that's all just talking about the first part..... Thats what adds to the latency. And processing half of the game locally isn't going to change any of that. There is something that can change some of it though..... but thats another story.