Behold the power of the cloud!!!!!

What you explain (if I understood correctly) would be a terrible use of the cloud. It's a lot better to have a console package a request for processing power, send the package over, have the cloud do the math, and send the results back to the console. The console would then interpret the results.
That said, I really hope cloud processing does not take off with home consoles... Call me old fashioned, but I want my single player games to be playable completely offline.

These conversations are actually kind of annoying because nobody really knows. As time goes on we will see more and more.

As of this moment all we can say is that it has great potential. I for one believe it will be one of the biggest things next gen as time goes on.

I concur 100% with your sentiments.

It's got massive potential.

It does have massive potential and MS could easily increase servers as demand increases. Doesn't really make sense at this juncture to offer something that would benefit 20 million X1 users when they have an install base of 0.

Not powerful enough to make COD Ghosts multiplayer to run at 1080p

Well, think about it like this. It's WATSON powerful? Well, it's powerful enough to win at jeopardy (and that's off-line.) So more powerful than that.

Also, in your original post you are forgetting about compression. You wouldn't need 5mb/s to send compressed game data - you could use much, much less than that. You could send the basic structure, and where all the light is bouncing around, then the local computer/X1 would do the rest with it's GPU.

Think about all the data that Netflix is streaming off Amazon servers.

Cloud 9 is also a professional esports team.

the influence the power it is worldwide.