Of course Microsoft know what they are doing.

Even if those self-called "internet experts" on different forums believe they understand everything about cloud processing and do not see the potential of it, they are mostly clueless :) 

There is a lot of buzz lately about the how the cloud will change everything, not only in gaming but in general.

What many seem to ignore is that internet infrastructure does not improve at the same rate as silicon. The cost of GPU power for example, has massively improved in the last 5 years. The cost of bandwidth on the other hand, has improved only slightly, and in some areas of the world, not at all.
In the long term, it is a lot cheaper to buy the latest hardware and perform your computing tasks locally, than it is to use a proxy server. The operating costs of bandwidth used & server costs in a cloud computing scenario, simply outweigh the initial investment and electricity costs of hardware that is used locally. This is especially true for graphics rendering because massive amounts of data are involved, and thus, even more bandwidth is needed.

I expect the cloud to remain a data storage service in the future and nothing more. If/when massive breakthroughs occur in the development of internet infrastructure, then things could change.

Because you say so?

Yep.

We are extensively using Azure and a good majority of the comments I see about cloud processing is just wrong...
People comparing it with remote play (Gakai), assuming that it requires a lot of bandwith, do not understand that even in a single player game there is a lot of asynchroneous operations going on which are not time sensitive and I can go on.

The only thing that makes sense from these ridiculous comments, is the fact there if you are not connected to the internet... Well obviously you cannot use this processing power. And I can only agree with this, but it is not the issue I see the most in their replies.

And if your "because you say so?" was referring to my comment about Microsoft knowing what they are doing... Well, they are the leader with Amazon in cloud processing/hosting... I may be wrong, but if we stop looking at haters alternate reality, chances that Microsoft knows what they are doing are high...