Also, latency isn't the major issue. Bandwidth is. Games can operate with 100 ms latency as found in DF analyses (button press to screen update), and for big events like building destruction, 100+ ms is probably not noticeable, especially with a flash and cloud occluding events at first. At 2 MB/s internet bandwidth (16 Mbps, upper end of average internet speeds), 100 ms affords you 200 kilobytes of data. Getting decent amounts of information into that tiny package is going to be the magic. And the economies and complexities of cloud computing are going to impact how much devs want to invest into researching solutions for these problems.