He didn't say anything about bandwidth, but latency.
Now, I haven't personally researched that much into the issues, but from what I gather the biggest problems are the latency (it's not a very good way to do real-time operations on something that needs to be updated without much latency, like most graphics operations), the huge amount of work (setting it up with or withou cloudgine can be a massive investment with questionable ROI), the questionable benefits (honestly, there isn't that much stuff you can offload that doesn't need a quick response yet to provides real value to the player). It can work in some cases, but usually it simply isn't feasible for 99% developers out there.