I think some fans believe so much in their company of choice that they create stories in their head and force them upon us.

Starting to?

lol u got me

Except both Nvidia and AMD have.  Both have demonstrated what can be done with their cloud-based rendering technologies.

The technology that both AMD and Nvidia have demonstrated is that rendering of graphic features such as lighting and backgrounds can be rendered, sent back down to the console via a video file, decompiled by the discrete stream engine and put into a form the GPU can use then applied to the visualization the GPU is using.

The benefit, besides off-loading GPU intensive tasks, is that it frees up the GPU to do more work than it normally would be able to handle.

So yes, it does actually improve the graphic fidelity because the local GPU is freed up from doing some of the scene rendering, thus it's free to use that extra capacity to provide greater fidelity.  The majority of work in processing the stream is taken up by the streaming engine (a discrete processor).  This is part of the reason why both the Xbox One and the PS4 include them.  The difference is that the Xbox One has two.  One for compression, the other for decompression.  So while the Xbox One can compress gameplay video for the Game DVR, it can in the same instant, decompress streaming video.

The biggest challenge to cloud computing is network reliability.  Latency is a minor issue compared to network availability and server uptime.

As for governance, that is maintaining server hardware.  No.  Just no.  This argument is completely stupid and doesn't even realistically taken into account how data centers are maintain.  Server hardware is constantly being rotated out, if not on a monthly basis, on an annual basis based on the age of the hardware.  Not to mention, long before the cloud would be used for graphics rendering, both the data center and network availability would be tested to ensure that the experience would be sutible for the consumer. 

And in reality, the biggest issue with a cloud GPU is the capability of the GPUs installed into the server and how many are installed.  Cloud GPUs have multiple high-power GPUs.  They're not a stock standard server.  So, while the CPU isn't necessarily the most powerful CPU, the GPUs would be extremely powerful. 

Why would it facture the user base.  If you are on the X1 and connected it just works, if not then your game plays without it.  Also for games that are MP only like Titanfall and a few others that are coming out, this is not a problem.  Probably the first wave of games will be first party or exclusives as they can target all aspect of the console including cloud compute.

So your graphics and AI degrade when you disconnect???? LMAO not happening.

It doesn't use the cloud?  You know it's just code.  If X exists, use X, Else use Y.  It's a matter of writing dynamic code.  It's not all that difficult, especially when using objects (Object Oriented Code).

It doesn't fracture the user base at all.  You may have a better experience via a cloud connected console vs. one that isn't, but the game would look visually similar to the non-connected console.  I mean we're still talking 1080p.  It isn't as if when the console is connected to the cloud it'll render in 4K, but when it isn't it's only 1080p.

More than likely what you'd see is your character has better graphic fidelity when connected to the cloud compared to when your console isn't connect to it.

No..that is never gomng to happen. It has not yet for a reason and it will not.

You do realize that every PC game has variable graphic fidelity based on the local GPU features.  Your supposition is baseless and ignorant.