Using Streaming to bypass PS2 Limits?

One thing that is rapidly growing in popularity now, is using streaming technology to allow playing games without having to have a system capable of even playing the game.

Take a look here:
http://www.onlive.com/#1
http://www.onlive.com/game-system_specs

This system is ran through streaming over a broadband connection to run the games offered by them. It's quite an interesting solution to some stuff. I am curious if this type of technology could be applied to XI for use on the PS2/XBOX. If they were able to design some type of streaming client where none of the work is done client side on the PS2, they could greatly expand what they need to do. The PS2 wouldn't have to do anything, just stream video and send commands.

Just was a new type of technology I thought was cool and seems like it could be applied in a MMO type enviroment.

I've heard onlinve is plagued with problems, and the input lag due to the nature of how streaming works is really bad. I wouldn't want to stream a game like this especially when it already needs bandwidth of its own.

I didn't think anyone took OnLive seriously...