i can see why they would do this, a streaming client on the PS3 would take up less ram and free up recources to implement cross game chat

actually in that leaked Microsoft document (which i read was from april 2010, so it's more than 2 years old - not sure how much of it is still really planned for the next machine) Microsoft actually wrote the same thing.. 720 the last console a consumer needs and cloud gaming by 2015

This.

In FY2011 they had a 94,374 million yen loss. It is now looking like for FY2012 they are also going to post a very hefty loss what with the 380million for acquiring Gaikai, PS4 R&D and Vita's poor performance. 

Not only this but acquiring Gaikai is possibly a good long term move but is a complete gamble. Unless I'm mistaken, Gaikai so far has done nothing but lose money. I don't think they really even have a revenue stream at this point. Streaming of games in general has so far received a pretty lukewarm reception and there are still A LOT of hurdles for it to overcome. In it's current form I really don't think core gamers will embrace it. 

It just seems that for a company that has had such massive financial woes over the last generation that making a very risky acquistion with no sight of when it will actually be profitable is madness. 

Theoretically; this will depend entirely on the end users experience with Sony's future infrastructure improvements and the bandwidth services in your local area.  Even still, it's hard to imagine a quality of service that mirrors local rendering. 

It's a good idea to provide backwards compatibility (I don't know how you would prove you own the game) if this is impossible otherwise.

Apart from that, I like my physical copies, so I hope this doesn't take off.

It all depends how Sony decide to implement Gakai into it's current ecosystem. Going Foward, Sony isn't going to limit the PS4 to a digital distribution model only. It's about giving your customers choices for physical or digital mediums. IMO this is a case of Sony going for the ultimate media centre. Whether this strategy is successful or not is an entirely different matter.

To late for the current gen, but could always use one time registration product codes.

Of course then again, someone might just buy the game, use the registration code for the streaming version and sell the disc version.

Could always be used for "game renting" as well to try and cut into used games market.

Or just do all streaming to get rid of that, and piracy.  Go the full Diablo 3 route.

that might not be a bad thing...   i mean, sony can't seem to make money on hardware anyways. 

imo, the wii sucess was in part due to having a low cost of entry @ $250.  if gaikai can stream to any interent enabled device (TVs, Blu ray players, computers, tablets)  they could reduce that price to $0. that breaks down a huge barrier to entry to play sony's games.

Ex.  you're a 360 fan, i get that, it's a good system.  if you could play the last of us without having to get the ps3 hardware wouldn't you be more likely to play?

anywhoo, i agree with your post above.  it is a pretty big risk.  if not well planned and implemented it could really backfire on them.  i also can't wait to see how this will be implemented.  but in the short term ... game demos without a download would be awesome in of itself.

I'd say they'd just use the same check as Microsoft does when you install games to the hard drive i.e. you must have the game disc in the tray/slot. 

I think they could just verify your PS3 BR you put into the PS4 and then start the game stream. The PS4 will be capable of reading and verifying the PS3 BRs, just not of playing the games on there as it's likely not strong enough and architecturally too different to straight up emulate it.