Local lag was significantly reduced over recent years, low latency modes of TVs/monitors, 60 and more fps even for console games, etc. So the baseline moved. That affects remote gaming also, but in a much smaller proportion. Remote gaming quality is as good as ISP quality, and most of ISPs are sh*.
i tried to play tekken 7 on xbox cloud and it was torture. maybe if you never played it locally youd br ok with the control response times, but not if youd played it running locally.