Cloud Computing the Future of Gaming?

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I ran across an article about an up and coming company called OnLive who claim to have developed a server-based processing mechanism that eliminates the need for heavy-duty hardware for the end user. 

According to the article, OnLive plans to let anyone with as little as a laptop Mac or PC play the latest and greatest games without ever needing to upgrade.  Those in the console world would have to purchase a small, custom box from the company with minimal specs in order to get the same experience over their television sets.

This certainly sounds like a great idea in theory, but it will be interesting to see if it actually materializes and if it does what the end experience is like.

So what do you guys think? 

Is this the wave of the future or simply vaporware in the making?

Added: Looks like the guys at PA read the same article.

-Quoth the Raven

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