Due to latency and cost Onlive just seems implausible to me, btu both those issues have been debated widely enough, it's wait-and-see time now.
Those two (major) issues aside, if you're looking at it from a console perspective the rest could be very sweet. On the PC gaming side, well it's back to the console vs PC debate: you're losing out on mods, tweaks, diversity in server configurations, and so on. You just get the keyboard + mouse control. Maybe - if it took off just watch all the publishers race to the bottom to "maximise potential market share", which means a joypad.
Granted until they get there they would be using existing PC games and there is potential for existing PC mods to be imported, but once it gets big there is no way for mods to get started.
FWIW patents don't necessarily signify anything, any "innovator" should be protecting their investment. Admittedly though the proportion being spent on patents hints to me that they're looking to sell up and have someone else put the money into and carry out the operations as a trade, or have 3rd parties carry out the operations under licence.
This comment was edited on Sep 30, 2009, 14:44.