That will be a system I will never buy. Why? Simple and obvious:

1: Are internet connections allways reliable? Hell no. Rarely at all. That means if you have a slowed, or effed up connection, you have a brick. Fun!

2: Visual quality will be lacking. Sure it would be footage rendered on an ultra-high end server, BUT, you'll be getting a compressed, and delayed video feed. Think of a grainy compressed jpeg on facebook where you can barely read the text. That's what you'll be seeing more or less. Maybe not that bad, but certainly not good looking. Also, a 60fps feed for games like CoD would be unlikely, or would eat ALOT if not all of your bandwidth if it was of decent quality.

3: Latency, or Imput\Output delay: When you have the hardware at home, your controller connects directly to the system in question. Meaning when you press a button, something happens right away more or less. Where as on a streaming device, your imput goes out through many servers before the system recieves your imput. Even the best connections arren't instantanious. Think about firing a gun. You pull the trigger, and it fires a second or two after, rather than right away like it should. That's pretty bad for fast paced games.

4: Bad for multiplayer: That 720p/1080p video feed of the game you are streaming, along with imputs being uploaded will hog some bandwidth, meaning your connection to multiplayer sessions will take a decent hit.

Streaming games is a terrible idea alltogether. If this ever becomes "The big thing", then I'll stick to my PS4, and PC games on disc, or my old downloaded files on hard drives. Not buying into it. Again: Net issues? Congrats! You bought a brick! It's like buying a car, and OCCASIONALLY borrowing the engine. Anyone with common sense will refuse this.

They'll define what we should avoid for next gen. People want to enjoy their sexy high-def TVs. Not put on another device and worry about it's batteries or complexity. The steambox controller is terrible. No analog sticks, and the buttons are placed all wrong. Haptic feedback is NOT real buttons.