I don't know why you bothered to provide a link and no commentary. This proves that people have attempted it, not that it is common nor that it produces equivalent results. I'm well aware that for some games, it can work "ok". Let me know when you get uncompressed 2K video at 60 FPS and <16 msec input response.
You suggested that it couldn't be done for games, so I gave you a link showing you that it can and has been done. There are number of reasons why that isn't a popular way to play games, but it's not primarily a technical issue.
You certainly could pull off this architecture in a setting with a good LAN connection. Though I'm not really arguing that it's necessarily a great way to go.
Yeesh, way to mince words. Yes, it "can" be done... I guess what I meant by "can't" was "provides a poor experience to the point where is generally unacceptable and therefore not a solution and hence the impossibility of the solution could be just as easily expressed as `can't be done [right now]`".
>There are number of reasons why that isn't a popular way to play games, but it's not primarily a technical issue.
It is entirely technical. Everyone who tried it shit all over it because it was a terrible experience, entirely due to limitations of internet connectivity (both latency and bandwidth).
I suppose the fact that many users have shitty internet connections is a technical issue. But for users with a high bandwidth low latency connection (FiOS, LAN, dedicated fiber) there's really no technical reason it can't work quite well.
The primary reasons these services didn't take off is that many users have shitty connections and almost everyone has a fast enough computer.