Of course, less latency is always better although running a traceroute between my IP and major city (Sydney) from 1,500 km equates to about 11ms latency with optimal routing. (Real life test, traceroute via an ISP Looking Glass).

Not if Nvidia is running the service.

Seems quite possible to me that Nvidia sells to the public just enough graphics cards to keep any frisky antitrust investigators off its back and reserves the rest for GeForce NOW, its "pay monthly for limited access to a remote gaming PC" service. The cards for NOW are billed to the BU running NOW at or below cost, the few cards available to consumers and System Integrators naturally have a huge markup due to extremely constrained supply, and Nvidia uses the fact that they are the thing behind the LLM Boom to ensure that they have -what a System Integrator in 2022 would recognize as- a reasonable price for just enough RAM for the computers that NOW rents access to.

Downvoters: notice the speculative nature of the previous paragraph. I'm not claiming that this is happening right now. I'm claiming that it's quite possibly more profitable for Nvidia to bill monthly for limited remote access to computers with Nvidia graphics cards in them than it is to sell those cards at retail and to SIs.