Gaikai and Onlive were around for years to try, so none of what Sony is doing is science fiction. I tried both and both worked fine from the Bay Area. The user has to be within a specified distance for the service to work well. They can service most of the US (population) from data centers on both coasts.
Most games are not twitch, those are not the games you would want to use cloud rendering on.
Most games are not twitch, those are not the games you would want to use cloud rendering on.