You have a hell of a lot of faith in ISPs actually upgrading networks and not charging insane bandwidth fees that make these services non-viable.For those worried about the long term outlook for local hardware. Ya its grim but it was before GFN. This technology is going to work long term... sure there are still things to figure out. Its where GPUs where in 1999. Where they where starting to do things that software wasn't quite yet.
Today this is just a high end gaming PC. In 2-3 years from now... streaming will become big enough that game developers are going to start targeting NV/Google/MS cloud infrastructure on new projects. Instead of what they believe the average gamer is going to be capable of playing when they launch their game 2-4 years down the line. Things like Ray tracing will become more common... developers will start producing larger textures, cause they will know every cloud licenced machine is going to be sitting on 16gb of vram and they don't have to worry about the home gamers that are averaging 6gb.
The best we can hope for is that the big streaming winners are companies like NV that respect store fronts like Steam and EGS so purchases for home or streaming can continue to be used both ways. Their is a very real possibility that in 5-6 years we see AAA games released that don't have anything but ULTRA mode settings, and levels designed that just don't look right without Ray tracing turned on.
So all in all I consider streaming a HUGE boon for those of us that enjoy high end PC gaming. Consoles may still be a bit of an issue as a low end target for the industry. Streaming however should lessen the impact average hardware has on developers. If a AAA game studio can swing for the fences visually and create modern crysis type games that make 99% of home computers bleed... but run very well on the cloud services. Then they have a path to make money on those games. Instead of having to dumb every game down to increase their market potential.
I would guess that 4-5 years from now streaming for sure will be a big part of mid range gaming. And in 10 years... yes only the super rich or very dedicated are going to build rigs that can compete visually with the streaming options.