I could see this happening for quite a lot of games, sure. But... I'm skeptical just because the experience for some games would be so, so much worse. Anything requiring fine input goes straight out of the window, such as a tactical FPS like CS:GO, or VALORANT. MOBAs, maybe, except when you get to a high level where it, once again, requires precise inputs. Hell, even CoD, FIFA require it when laying against other players. Fortnite gets quite difficult when you consider the prevalence of building in that game - lord knows I struggled with accuracy even on a good machine. I guess Destiny 2 has demonstrated some aspects working, but AFAIK, quite a bit of the game is PvE.

I can't think of an analogous comparison for this in other media, to try and make a comparison to. Either something groundbreaking needs to happen (and doesn't physics prevent this?) or if the transition truly happens, these types of games will require a fundamental change in how they work.

Another thing - if VR ever actually gets any traction, I can't imagine cloud streaming working here.