I just wrote and article about the onlive system and I noticed a few flaws and raised a few very valid points.
http://thisismyjoystick.com/editorials/onlive-the-next-big-thing/

What are you guys views on this as it could be fantastic technology but I can see a lot of bad points about it.

You pointed out flaws of not only OnLive system but digital distribution in general. I' m really not interested in those kind of things because I don' t have the necessary connection.

I am really excited about OnLive, mostly because I already buy my games through Steam or D2D and only some games retail on occasions. When everyone starts doing that it can grow more and more, so yea, I hope it works out well.

I would really love to have something like this that works. Being in Australia, where connection isn't too much of a problem but physical distance is, unless there are servers over here, we're screwed for now! Give it time.

I think, after watching the music business crumble into a dusty pile of broken dreams, something like this is inevitable. Currently, the biggest problem outside the US is connection speed. In the UK certainly, hardly anyone really has a decent connection speed and didn't the Gov say they were gearing up to sort that out by 2012? That's a long way off. I'm not going to miss having the cases and discs because space is limited in my house, as I suspect it is for many other gamers. I do think that once this is properly up and running developers are going to have a hard time keeping the pirates at bay, but it will be interesting to see what happens. I can't think of a way to keep the stolen downloaders off the net and believe the only way this could effectively be policed is if all companies involved in all digital media and entertainment clubbed together with international governments and put the boot in, but it's almost like the international drug trade, you're never going to beat them all…

I still think that virtual belongings are a bad thing. Its like buying stocks that don't exist. Its like buying a plot of land on the moon. Fancy buying a star?

Think you get the idea. I have no doubt that this is a good idea and the technology would be awesome. They create jobs for a few people to manage the servers. They kill jobs in retail if this tech becomes the new standard of medium. It just goes to show that gamers are becoming even more lazy than they were.

I don't think it shows anyone getting lazy. It's just a possible better alternative. I like buying a game off steam. Because I'm lazy? No, because it's usually cheaper, I think it's a better way of organising / keeping track of my PC games (I'm fine with console games but PC DVDs get lost all the time), it's more direct, pre-orders work better, etc etc etc.

There are a whole load of reasons why I like steam better than getting PC games at the store. I don't feel the same way about console games (excluding smaller titles on XBLA / Wiiware) but that's until there is, again, a better alternative.

Does driving a car make me lazy? No, it's a faster way, easier way to cover distance.

I agree that it could be convenient, people always have liked to go down the fastest route. Do you really think it will be cheaper? I have my doubts. Take xbox lives games on demand, its hardly cheaper. Also there is a large market for second hand games. What happens if you never want to play that perticular game again? you cant very well get rid of it can you. How many games can you honestly say you play more than once. I can say I can count them on one hand. Renting is all well and good but if you pay by title thats going to be expensive. I buy some games and I trade in or sell them on when I have finished with them.

I never ever buy anything that I cant hold in my hand, thats my preference, I'm not alone though. soon there wont be retail of anykind.. we are a world of lazy people the majority of us do everything online because its "convenient". I dont drive, im quite happy to use a bus or a train and walk the remainder, unlike most people I dont rely on that luxury.

Fair enough. The physical product is probably the main thing for me. I don't often sell games again just because by the time I want to they're not worth much, but having them is good. Only having a license to play annoys some part of me too. I like Steam's permanence but if OnLive is gonna work on rentals or something then eh... Or maybe I'll adapt.

I think it could work fairly cheaply on a subscription basis, which if I remember they were thinking of doing?

Steam is stupidly cheaper than retail most of the time, at least with the exchange rate in Aus at the moment.

True, and also the Weekend Deals are bloody amazing! I also like to have my whole game collection with me all the time, just login, download and play. Here at home I have also +100 boxed games, but it piles out my cabinet, so I love Steam for storing 99 games without piling one meter in my crappy little room.