I'm somewhat surprised he isn't predicting something closer to a mix of the OnLive strategy partnered with the last-mile provider (Comcast, AT&T, etc.). It seems like some way of letting game makers or these services rent space in data centers on the last mile (ala the datacenters at the CME, NYSE, NASDAQ, etc.) might make it possible to deal with the fps latency issue and stream to a fairly dumb client that runs on most console/set-top box platforms.

Certainly, if I were making a 5/10-year bet, that'd be it.