I actually sat their cringing at the presentation... I still, as the guy mentioned in the video, am sceptical about the 'low latency video'. However, given everything works as advertised, OnLive would be great. I am still sceptical about the amount of resources required to power these games also. I'm wondering if they can do any sort of video caching across sessions or something, which would be interesting. Given they've been working on this for ~7 years, I'm sure they've considered these sorts of things.
Down to my major gripe... I'm from Australia, a country roughly the size of North America with a population smaller than London. Not only do things take forever to be released in Australia, it presents a problem in terms of data centres. If you know anything about Oz, you'll know you can't really just stick a data centre on Uluru and expect it to service the country. But who am I kidding, even if OnLive came to Australia, commissioned data centres in the right places, our broadband network is close enough to a joke to make it a waste of time.
I'm also very curious to see how this affects Nintendo as it seems they have built a little empire around motion control/IR and peripherals. I wonder how resilient these things will be to OnLive. I've got to say tho, OnLive would enable Wii owners to be able to play the games that a Wii just cannot handle, which is a win :)