I don't think that you can copy a game wich you only have the rendered information of... All the gmae logic, etc. pp. is stored and running on a server, you only get send the rendered images or the information for your graphics card how to render it. It makes it really impossible to pirate a game.
Yeah, but the idea is stupid to some extent. It means paying 50 bucks for a game might mean you won't be able to play it whenever a server goes down permanently. I very much like the fact that I can simply walk to my games collection and pick say Half-life 1 and play years after it got released.
I definitely don't like the idea of games becoming slot machines and the like. I also very much doubt if it would work in practice, seems like 5Mbit/s isn't really a lot to transfer continuous streams of rendering and input / controller data. Don't forget this whole system will need to work with zero latency for it to be even close to playable if it's truly only rendering information.