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I don't really understand who this is meant for. People with slow internet connections obviously can't take advantage of this. On the other hand, people with fast internet connections such as myself don't need to use cloud since every download is blazing fast.
Useful? Absolutely. Profitable? Aye, there's the rub....
Cool article! I could sure do without so many system/game updates/downloads. It's such a pain.
He picked the worst example possible: Trying to compare cloud gaming to updating games on the PS3. Of course the PS3 is going to offer a bad experience on that front.
If your a PSN PLUS member the ps3 will update any game you've recently played. True that games you haven't played in awhile won't be updated but I prefer to sit and wait for the update rather than stream a game.
There are other problems other than latency, the biggest disadvantage is that internet connections isn't always stable. We can have the fastest connection in the world but if its not stable it means nothing.