There's been a few OnLive "Tests" or something like that, but barely anyone has reached for the implications that might follow.
Personally I'm not a fan, to say the least.
The thought that something like OnLive (or anything like it) might at some point have the success of Steam is truly outright horrifying, not only do you lose any advantage PC gaming might have over consoles (from being able to Mod your game, to tweaking graphics settings and using any kind of control method you like etc.) and would replace it with a blurry mess full of compression artifacts, banding and input lag at low resolution and with the game on their side running on low or medium graphics settings to save on processing power, but you'd also lose every single consumer right you might still have left when you buy a game as a product (with companies being able to revoke your rights to your entire game library over any reason and physically being able to pull it off).
I see it as the ultimate form of DRM, worse than anything I could have ever imagined a few years ago and I'm appalled that most people don't regard it as such.
There's a whole bunch of "Steam-Exclusive" titles nowadays (which would have been unthinkable for most people but a decade ago) with it having become a normalcy and a lot of developers are/were working towards outsourcing their SinglePlayer game code server-side by themselves even though a lot of the implementations so far seemed rather awkward. UbiSoft started with the likes of Assassin's Creed 2 and Silent Hunter V, although it was just a bunch of simple "function calls" that were prompted from the servers and stopped you from playing if the client didn't get any answer. Blizzard is going even a step further with Diablo 3 by outsourcing the entire Loot, Monster-spawn code etc. server-side so they have total control over it. These kinds of companies would be the first to jump on to the bandwagon train of "Cloud Gaming Exclusives" as soon as some service has managed to establish itself and forego any Retail or Digital Distribution Release entirely, and likely more would follow, it is not a good thing in any way I am looking at it, hell they could even terminate games that are unwanted or out-of-date that noone could play anymore after that (out of licensing reasons, image - say Rockstar decides to pull Manhunt or something like that) and the games would be gone forever with nobody owning a copy.
The only article regarding the issue I've seen so far is from a german gaming magazine (GameStar) and unfortunately translates somewhat awkwardly: http://translate.google.de/translate...ntzaubert.html
They mainly touch upon following things being lost with these services:
1. Being able to play all games at all times
2. Playing with maximum graphics details and antialiasing enabled
3. Playing high end multiplayer (as far as I know OnLive only hosts Multiplayer between other OnLive players because of latency)
4. Setting up Multiplayer-servers and hosting LAN parties
5. Playing offline
6. Installing Mods
7. Tweaking Ini files
8. Cheating (even the Offline kind)
9. Securing your Savegames
10. Being able to decide if to Patch or not