I play on the xbox so it doesn't effect me directly, but conceptually, it's idiotic.
Instead of your game's reliability and playability being only dependent upon the consumer's pc and your code, you've now introduced the consumer's ISP, the internet in general (third-party lines, routers, etc.), and your servers into the mix.
It's the reason, imo, so-called cloud computing will always remain a niche and never the mainstream. It introduces too many unneeded variables that can cause failure.