Cloud Gaming, the death of Onlive

Recently the service known as OnLive was announced to be shutting down its video game streaming services. If you aren't aware of what OnLive is, i'll sum it up for you. OnLive is pretty much Netflix only you can stream and order any game for a low subscription Fee, of course this meant to stream a game you needed to have a strong ongoing internet connection otherwise the service would crash or make your games unplayable. Cloud Gaming has been bit of a controversy for the past year or so. Many people complaining that they do not have a good internet connection, or don't even have internet in general to play their games. But that doesn't mean Cloud Gaming is flawed 100% of the time. For example, Steam has done a good job at making a similar concept of Cloud Gaming in a sense. If you aren't connected to the internet but still have Steam up and running and have your games installed from Steam on your computer, and they are single player games that don't need an online connection to play, then you can still play your titles even if Steam is not working or is offline. Right now Cloud Gaming has no way in getting anywhere, even though developers would highly ask of it to exist, considering the fact that Cloud Gaming makes patching games and creating updates easier.

What is your stance on Cloud Gaming, do you think it has a future at all? Do you think a service like OnLive will be recreated in the near future or late future? Would you subscribe to OnLive over renting Games from a service like Redbox?