Yikes, that's not a library at all. Think of this analogy "My local library was going to offer the most recent Stross novel, but it turns out that's available at the library in the next town, so they had a book burning party instead"

How is GaiKai doing now that OnLive has folded? Are they headed towards running out of cash as well at some point or are they doing better?

And OnLive folded, and sold themselves to a newly created company named OnLive. So, it's still there. And I think still has a lot of potential under the right person. (With enough money.)

I still half-expect Steam to eventually offer streaming of games players already own for a small monthly fee. I'd expect them to make gangbusters if they did.

Shows what a difference a business model can have. They both had cloud gaming technologies, but while OnLive wanted to sell it right to consumers, Gaikai went for the publishers.

Maybe these titles had high licensing costs (regardless of whether any OnLive users rented them or not), and they figured if their competitor had the game less people would be playing it with OnLive? So they'd be more likely to make a loss on the licensing cost.

That doesn't sound like a business decision to me...