Honest question, which of those is in any way applicable to this technology? Besides the fact that these services already exist and, provided you have decent infrastructure, which will only become more accessible as time goes on, do serve most people's gaming needs even in this early state.

Of course, there will always be some for whom local will be the preferred option, but they were talking about the future default. There are still people buying and consuming Blu-ray due to its higher quality, but the default (i.e. what the majority use) has become streaming, and I don't see anything preventing gaming going the same way. If you wanna stick with gaming, the majority tend to play on consoles and do view the advantages in convinience to outweigh the disadvantages in terms of possible fidelity, higher framerates and lower latency that a PC may offer (even in cases of similar pricing).

Concerning cloud gaming, network latency will go down, and the offered bandwidth will go up in most areas of the globe. With recent advancements in high quality upscaling, networking demands will also decrease. Physics is not a hindrance, unless I am overlooking something.