Pricing
Apart from the many problems I have with this service, the pricing isn't exactly great.
First, you have to pay £7 a month (or the equivalent "BT tax" to compensate for their shiteness and package-forcing). Then you have to pay for the game. Okay, maybe you can rent it for a few months, but if you want an unlimited pass (as the article states - legally binding for only three years) then it costs EXACTLY the same as buying the damn game, sometimes a little more. Except it pretty much disappears if you stop paying (and/or after three years).
You don't save much on hardware - £70 for a box or have a computer that's already capable of running quite a lot of stuff anyway (and which you use for myriad other things, upgrade every few years anyway, etc.). You need to tie up your broadband line, most of the time you're playing, you need to already have keyboards, mice, joysticks and other controllers that you want to use. You need to keep the subscription going even if you have a gaming lapse.
It seems to me an incredibly niche usage that cuts a lot of people out of the equation - serious gamers won't tolerate the compression or the latency or the prices, households won't use it because it's effectively single-player-only because of the bandwidth requirements and hardware interfacing, kids who can't afford games but just want to demo things to say they've played it will be disappointed with the requirements and the results (not to mention pricing), casual gamers won't want to pay a subscription / box /software etc. to rent things like World of Goo (which disappear if they stop paying), people who are scared to install games won't even hear, let alone touch, this service.
To me, even a cheap gaming PC and a copy of Steam is infinitely more valuable and solves almost all of the above problems immediately. And, guess what, you're final picture quality will be better! It's effectively the same as those "virtual office" services when you can just log onto a remote desktop, except it really picked the worst possible use-case.