I think the key disagreement is we nay sayers believe the latency will keep the feature very minor. While the believers think it will be expansive.
There are significant engineering problems in the mix and the return on investment is minor.
Even with a 'all in the cloud' feature like PS-now. Available computing power is a huge issue which drives up the price; and latency makes it impractical for a lot of games. Turn based RPG - yes. COD:MW2 - No.
Latency is definitely a limiting factor yes. But not to the extent that I think a lot of people believe it is. It would basically never be a real issue for AI, as if a game can be played online between two players, then the server-side AI is essentially granted an assload of time to make its decisions, as it will immediately perceive player A's actions to moment they hit the server, unlike how player B would have to wait for the new state to be transferred down to them locally before they begin to make any decisions based on the new information being displayed.
You even get more time for collision based applications than you may think, as time as perceived by you, isn't the same as perceived by the machine. You've probably played numerous games where it'll slow down, or pan to a fancy camera angle or whatever, in response to a dramatic shot or close call etc. In real life these sorts of things would tend to require replay footage, however the game can do them on the fly because it already knew the outcome of what's gonna happen 5 seconds from now, the moment you took the shot. This allows plenty of time to crunch some absolutely stupid numbers in preparation for an event it knows will occur soon. By the time it actually happens, you already have the required information sent to your local console.
Also, comparisons with general cloud gaming are pretty pointless. Processing resources only need be spent for a cloud enhanced game when something on the local box triggers a requirement. if nothing big is occurring in your game, then the server is doing nothing (or just handing out results to other players). When you sit idle when playing Killzone 2 on PSNow however, it's always running a full game of Killzone 2, with all the bandwidth and processing requirements of transferring your 720p footage of nothing happening. The latency issue is far more compounded as well, as every input you press has to go from you, to the server and back before your motion is visible to you. This isn't the case when the core game is running locally, which is why playing a racing game over PSNow is more problematic than playing the same game online.
That's not revolutionary, that's been around since the mid 90's.
Depends what you consider revolutionary really. As mentioned before, it's pretty easy to argue that pretty much no technological progression is truly evolution, as it's always really just more complex implementations of what we did before. I imagine you must absolutely stuff like the iPhone reveal.
I personally consider the fact that I can create a custom game in FH2, invite my brother, and then drive 15 miles down the road to meet him, with all the traffic I pass being synced for both of us, to be pretty revolutionary. Last gen we couldn't even a few basic fixed path cars in Outrun to survive the online transition. It's something that otherwise has only been the domain of persistent MMO type games like Test Drive Unlimited.. except now it's an instance of our own, created on demand when we want it, and we didn't even have to pay to rent a server like back in my old Quake 3 days.
As I said in my previous post, all of that is BS until we see the applications run in real life life scenarios. Otherwise, it's hogwash.
Hey, you were saying it was BS that they "could" do these things. Not that they are doing them right now. They absolutely CAN.. whether they will is a different matter.