You forgot
You forgot to mention it's exclusivly distributed by BT, who will either tank the whole think or charge a fortune for the heavy data use, assuming their ADSL network can even cope.
After a successful first year in the US, cloud-based game service OnLive is finally heading to the UK this autumn. Customers with fast internet connections will be able to stream games such as Borderlands and Prince of Persia straight to their computer or TV set, no download required. OnLive's UK page now shows a countdown …
Unless I'm much mistaken, BT are the only ones allowed to distribute OnLive as part of their own bundles, but the OnLive hardware will be available to buy and use for anyone on any provider, except that they'll have to buy it as a standalone product (e.g. off OnLive's website or from a high-street retailer, if it becomes available there).
I can't remember where I read that, so forgive me if I'm wrong, but I'm almost 100% certain that anyone can buy and use the service, just not bundled with any internet package that doesn't come from BT.
I was the biggest naysayer about OnLive when it looked like a pie in the sky idea that required various breakages of the laws of physics. Then the demos turned out to be almost half-playable in the UK using their datacentres in the US. I'm looking forward to it being streamable without an ocean in the way.