As discussed in this thread, the client is doing some of the computation and the server is doing some of the computation. If it's all happening on the server, it's just a dedicated game server and nothing relevant to the ideas of this thread."Game augmentation" would always be a client-server model.
I suppose the discussion has somewhat mutated into 'what is it possible to compute and stream over the net?' whether augmenting a game or creating it outright, as the issues are mostly the same. If the physics data is mesh and materials, the challenge is streaming that into the clients. But being completely server side does simplify things versus previously discussed augmentations.