Eurogamer: Why OnLive Can't Possibly Work. Reasonable estimates of OnLive's technical hurdles push science into science fiction pretty quickly.
I remain naively amused by the controlled-conditions GDC video, but it does remind me a little of that story of a con artist trying to sell an Internet video compression technology—which unfortunately I can't find a link for at the moment. The bit of the story I remember is of him inviting his potential investors out to a waterfront where he set up a video player and monitor on each of two piers, each supposedly connected to the Internet. In fact, they were merely connected together directly via a coaxial cable in the water. (Anyone remember this one well enough to find the link?)