Re: great buy
It does look impressive on a phone (well, the OnLive equivalent did when I tried it), the small screen hides the appalling compression artefacts, touch control is poor and disguises the latency problems and people still have lower expectations for a phone.
On a PC both OnLive and Gaikai were disappointing. Laggy, bad compression artefacts, low FPS on Gaikai, bad latency on both and low resolution.
Bandwidth is a bigger immediate problem. It sucked 5Mbit on my 10Mbit connection - thats 2Gb/hour. That triggered throttling on my Virgin cable, it would quickly hit the bandwidth cap on most UK accounts. That 5Mbit bought me just 720 line resolution and looked like shit. To properly support a HD TV 10Mbit+ and no cap is going to be needed. That's going to work well in a country that struggles to supply 5Mbit connections!
I agree, it's going to turn up on handheld devices first while they wait for the network to catch up with the scheme. Unlike you though, I've had OnLive on my phone for months and just don't bother to use it, it's failed to interest me at all. Firmly in the 'surprised it works at all usably' rather than impressed.