Bumped posted a recap of their TGS showing, there's also some info on the PSO2 Cloud version:
http://bumped.org/psublog/pso2-station-12-recap/
"Players will not have to get a large Hard Drive nor wait through lengthy downloads since the game data itself is stored on the cloud server. The graphics will be around Tier 5~Tier 6.
Due to the nature of cloud gaming, the game will run at 30fps, with some delays depending on the network. In order to receive a constant stream, a stable network is required.
The game will play basically like any other platform, with free to play and optional cash items."