Why? It seems like a completely ridiculous idea (latency-sensitive, incredible waste of bandwidth). I honestly can't figure out what the purported benefit is.

But it's the cloud! /s

It's simply not feasible for a majority of countries and their broadband. Also, you would need to design games with lag in mind, otherwise there's a noticeable lag, even at 40 or so ms. You'd need the client to be doing some feedback work.