Jamjed, so the issue is, games are run via access of a license. Saving the fight on weather you own a game on dvd or not, to run it requires you agree to a license which among things says you paid for the game legitimately. The copy of the game Nvidia is running does not give them that license. The remote user may own a license agreement but it does not cover allowing remote parties to share in said license.
In the end, nvidia made a good platform and while there was originally a lot of good faith going on, many companies who are unsure of how THEY wan't to go about making money off of something like remote streaming are taking their toys and going home. It is not that they may not partner with nvidia later, but they want to make the choice in WHO they license their games too that nets them the most money.