You should also know that Broadband internet is not of high quality in all of the world. When my dad told me about that idea in 1997 about running apps from the internet, when we barely had 28.8kbps dial up conn, it seemed like sci-fi. Today its somewhat possible, tough in my country, the average of internet bandwidth is cca 2mbit, and i have 4mbit. Ive tried onlive, but the ping was about 1-2sec, which renders it impossible to enjoy gaming. It MUST be an ALTERNATIVE, not a rule. However, playing games on tablet pcs, which will never be as strong as pc/console, is a great thing.
And, also, PS or XBOX will, in my opinion, never have onlive, but i read something about nextgen xbox support of cloud gaming, and im sure $ony will have its counterpart. As i said i hope it would only ever be just an alternative.