Need proper broadband....
Onlive is a great idea. But its an idea that it a little early and they need to wait for broadband speeds to pick up first. BT Infinity is rolling out and is capable of brilliant speeds, but until they sort out the data allowance it won't work. Virgin cable network is also capable of high speeds as well. But the problem is you have to pay extra to get these speeds even so the allowance might not be enough.
Most ISP's moan about YouTube, BBC iPlayer, download sites etc because it takes a huge amount of bandwidth on their services which they have to pay for but try and keep the user monthly costs down. OnLive requiring such a huge amount of data even after an hour is going to seriously test them.
Until Fibre or fast services come commonplace, I will stick to my Xbox which actually works on my 6.5mpbs service with PlusNet very well, costs £23 per month for the phoneline and broadband and £25 a year for the Xbox Live serivce. Thats cheaper than getting higher speed broadband such as Infinity on top of OnLive charges. On top of that, my xbox does full HD with games, Onlive doesn't.