Yeah, luke pretty much beat me to it.
Lag is going to kill this thing. Lag when your internet connection isn’t being perfect causing slowed or jumpy gameplay. And lag between the pressing of buttons/switches and those commands getting received by the server and the server sending the image back. Just not gonna work with action games. It would outright suck if this thing took control of action games; playing with an inherent gap of about a sixth of a second between hitting a button and seeing the action happen on the screen would drive me up the wall.
Neat technology, but it does not suit shoryuken-type gameplay.
Edit: I know about this thing already because I saw some guy on TV saying there would be a “universal controller” for it making me think “wow, I’d love that for hacking”. Turned out of course the guy didn’t know what the hell he was talking about.