I find the thought of this both intriguing and retarded.
First, this isn't a new concept. What they're (likely) doing is taking a gajillion screenshots every minute and sending them down the intertubes to you. Then they also take and translate input. This has been done in the mobile phone browser market for several years now to make up for the shortcomings in native mobile browsers (
Skyfire is an example of this). Because of this, it is more than 100% reliant on your connection speed and latency and so it's only really available for people with a great connection (and he's wrong about connection speeds, on average you get about 60% or less of your reported network speed).
Pros:
* You can rent PC games. Probably the best feature, frankly. You can try a game before you actually commit to buying it, this is something even Steam could stand to supply.
* The community features are very console like, which is great. Commuity features for PC games are in general very crappy. Steam Community is lightyears ahead of others, and even it needs serious work.
* Brag Clips is a universally awesome concept.
* Ability to spectate anyone on any game is an incredibly great idea.
Cons:
* Will definitely be subscription based, which will put most people (including me) off. Maybe if they let me in the beta I'll change my mind
* Will probably have several subscription levels with the lowest having very limited functionality.
* Lose the freedom of having your games installed on your computer (fine tuning, tweaking).
* Will split up the existing PC userbase under a model that doesn't allow much interconnectivity.
I'm sure I could come up with more. The nature of the screenshot model pretty much makes all of the Pros possible.