I believe their main point is that humans are much more tolerant of latencies than is commonly assumed. I remember reading about Carmack's early work with VR and sensor delays and screen refresh delays on the order of 100ms and as high as 400ms and it still being enjoyable[1]. At 60fps you've got about 16ms per frame to work with, and I'm sure the human mind doesn't need input -> change in image within a single frame (though I'm sure pro gamers would notice).
I even see people using and enjoying shadowpc + vr headsets, where delay between head turn and change in image can be nauseating.
[1] https://www.pcgamesn.com/virtual-reality-john-carmacks-battl...
On average I get a single noticeable slowdown event every 3 sessions, so for me it's worth it
I'm on cable, 200/20 with a ping in the mid ten ms range.
Not sure if any of the network checkers run on gcp
As for the business model though, you’re totally right. No way I’m going to buy a game and be locked into Stadia. Not only would I be prevented from playing locally, who knows how long Stadia will be around at this rate?
Luna on the other hand I tried and you could definitely feel it. They are definitely running those at AWS DC's, as I didn't live near one.
Input lag.
That's not a technical problem. It's physics.
In the very least it should've operated off existing launchers eg buy it in Stream and you can use it in Stadia. But honestly, the games where input lag isn't an issue is such a small subset that Stadia was only ever going to be a niche product.