How much to do remotely is a big issue. A big problem with local rendering is that you need more bandwidth to the client than you'd need for video. A big advantage of cloud gaming is that you're in a data center, close to the asset servers with many gigabits of bandwidth.
The big problem with remote rendering is that it costs too much. "Cloud gaming" startups have appeared and disappeared for years now. If they charge too little, they go broke, and if they charge too much, users leave. NVidia cloud gaming is currently $10/month for 6 hour sessions. So is Stadia, now. That's not too bad, but it may be a loss leader. NVidia already doubled their price once. Startups with similar offerings are charging around $45/month.
