lukipela: They are going to need to seriously up their available bandwidth if they are going to attempt to stream anything other than turn based games. Can you imagine trying to play a FPS that was streamed?
There's a video of an e3 demo where they stream Assassin's Creed Brotherhood to an iPad 2 using a wifi game controller (there's an Android Tablet in the background doing the same thing). The suggestion is, don't bother unless you have a steady sub 80 ping to an OnLive server.
Its a great idea, I just hope the tech is available to enough customers to make it a viable business. Certainly its going to rely on local servers, I'll not be able to play game's from Australia, running on an OnLive server in the states for example.
But ISPs could develop the tech like game servers of old, with a revolving catalog of titles to attract clients to their service.