OnLive video demo

We haven't even gotten to the point yet where a major console game system can survive without any physical media (ie. 100% DLC.) So now we're expected to believe that sometime soon there's going to be a console that not only requires a broadband connection, but a very fast one *and* exceptional routing to a particular datacenter in order to be operational at all? All the while giving you a substandard experience due to issues relating to compression artifacts, video resolution, sound quality, input lag, etc.

I'm also trying to wrap my head around how a live unbuffered HD video stream is supposed to handle sharing an internet connection with your typical household that's going to be downloading hundreds of megabytes a day worth of Youtube, itunes, hulu, and other such larger content.