The notion of paying so much for what is measurably an inferior product compared to the physical disc means that OnLive simply cannot be taken seriously at this point in time
I wouldn't touch this system with a barge pole personally, but I can at least see (very clearly) that the system was never targeted at people who own a PC capable of running the games they are offering. We're not in their target audience, and it's a bit pointless to review the system from any perspective where a good gaming PC is a viable alternative, because OnLive can't compete with that.
So you're not paying for an inferior product. You're paying for the only version of the product you can afford. If that's not true, then you're simply not going to be interested in OnLive.