OMG there needs to be an edit button
What they are doing is process offloading to a server farm. Latency has nothing to do with it. The amount of information being sent and received is small. The console will have all the required large information and all the offloading is send a plot job to figure out where things go and it sends the answer back. This elevates the console having to do a bunch of number crunching for processing or graphics. Same functionality has existed with supercomputers and graphic designers. It is nothing new, just new in the console world.
If Microsoft implements this function correctly it will allow the X1 to become main times more powerfully than the PS4 no matter what hardware is in the physical console.
100% BS. Thanks for posting though.