I doubt this would be widespread as this will kill the market for Nvidia & ATI graphics card.
Also since it's in the 'Cloud', you really never own the game and that won't fly with majority of pcgamers.
I see this definitely being big for netbooks as this technology is better suited for it.
I haven't watched the video, but if this means I could get the same graphic quality with my own hardware without having to buy that hardware then I'm in!