That's why I thought the local graphics card handling the resolution would take some of the payload from the bandwidth.
Naa.... that's sending significantly more information down the chain. Think of it like having a PC... with a discrete CPU and GPU. The CPU an GPU is connected via a PCIe 3 bus. What you are suggesting basically turns the "internet" into your PIe bus. That is a lot of bandwidth....... a LOT.
What they could do though is make some really proprietary video codec. Something that will require good amount of owert decode. And have some sort of dedicated specialized chip wh pretty much only excels at decoding such a codec. Such an approach could cut down bandwidth required for video streams by as much as 70% if i were even possible.
I think its possible though, but why no one is doing that is that it means only people that buy your hardware can use your service. At that point you might as well just build a conventional console.
Anyways,you were talking about latency...bandwidth and latency are mostly two very different things.