Latency really isn't a problem in many contexts. I've got some prototype streaming solutions running in an azure region near me and I can't perceive any round trip latency compared to localhost.

There are certainly more edge cases and things to go wrong when streaming the entire experience, but the networks are only getting better over time.

Streaming games are also a big answer to many forms of cheating. Not all, but it would make a night-day difference for any competitive game today.