For as long as I've been hearing about 'playing in the cloud', it's never really caught my attention. Maybe because although my internet is not terrible, I wouldn't dare to say that it's great, and although I've seen some times that the systems say that it's not necessary to have “so much speed”, the reality is that it is, at least to have a more or less decent experience.
Anyway, even if I had a nasa internet, I don't like the delay that is usually there, as you mention. This is why I have always believed that the technology of playing in the cloud is just something new and amazing, but when it comes down to it, the audience that will really see its usefulness is very specific. Besides, I think it still needs to evolve a little bit and improve, but I don't know if that will be possible.
cloud gaming seems like an answer to a problem that most won't face.
I like this phrase, for me it totally defines the situation.
Yeah I don't see it replacing anything in the future. It will just exist in some form, until it doesn't. I don't think there will be a major breakthrough. There's more money in selling overpriced licenses to a game than having everyone pay a monthly subscription to get access to everything. Microsoft's Game Pass is a great example of how even that idea has failed to be profitable. They've had to rip that idea up into pieces and change it so massively that it now even has different tiers to it.
Nothing can replace game ownership and hardware.