Obviously, the Xbox One Cloud is still in progress so we don't really know yet whether it will deliver on all of Microsoft's promises. What do you guys think? Will this live up to the hype or will it be this generation's "Power of teh CELL"?

Well... They are trying to make the cloud work on x1, windows and windows phone fronts and unlike the cell, the cloud is useful and needed and is technically the "way of the future". So I think they will do fine... Once the price of the x1 goes down, I think it will really start selling and the cloud is just a bonus

If you mean that you won't be able to toast bread with it or make a fridge with one then yes, it will

the cell was responsible for the games that brought PS3 back into the race.
Its power was proven over and over again. The cloud is yet to be proven once, and its a technology that Sony or nintendo could replicate for their systems even if it does deliver as MS claim.

It will be worse, cell actually showed it's power later on, even MS has given up using the cloud in their statements.

"The cloud" is an open ended monster that is only limited by internet latency and bandwidth.  The Cell is a processor.  Completely different hurdles for the two, so stop comparing apples to goats.

The biggest problem that Microsoft has with the cloud is that they are not [completely] in control of the internet infrastructure it relies on.  They can have the fastest most robust servers in the world, but it means squat if the web network to get to them is busted and/or gimped.

EDIT

One more thing.  Other companies have the cloud too, including Sony, Google, Amazon, etc.  Whereas the Cell was exclusive to the PS3 (partially because no one else wanted it). 

You could charge the Cell with being responsible for ultimately making the PS3 look better, but I guess you could possibly put that on the skill of some Sony devs.

I'm only comparing their promises.

Sony sold the Cell on the promise of supercomputing potential. MS is selling their cloud with the exact same idea. I'm not comparing what they are, I'm comparing what the companies promise that they can do.

Then I say MS has a chance where the Cell never did.  One is a static piece of silicon, the other is a dynamic.  Problem is, progress will be slower than what Microsoft is hinting at.  First benefits of their cloud servers will be more dedicated servers, analytics, etc.  Graphical offloading etc. are too hampered by latency right now, but it is getting better daily.

ms cloud al hype