Maybe the problem isn't that it's impossible per-se but that the consumer-grade services underprovision their machines/bandwidth, or that consumer-grade gigabit fiber isn't actually that good (or problems in the "last mile" like using Wi-Fi instead of good old Ethernet)?
People who classify themselves as "hardcore gamers" perhaps, but those people will also drop upwards of $1000 on a graphics card. They're not the majority in gaming. Most people will happily play a game even if there are a few problems if it's cheap and entertaining.
You can say what you want about the business model or Google itself, but the UX is impeccable.
I am periodically in disbelief when I think that what I’m playing on the screen is being streamed by a server.
And, as a TO for fighting games, there's no substitute there for the barest minimum latency possible (to the point where older games legitimately feel better because you can play them over analog connections to a CRT).
I'll grant: it's impeccable under the right network conditions.
But cloud games have an advantage too and maybe we'll see new kinds of games/experiences that are not possible with local PCs.
While there are some things that are even more latency sensitive, I think that could become a very small niche in the near future.