So I'm not actually playing the game on the machine.
Rather, I'm watching an image of me remote controlling another system that the game is being played on and then being streamed to me?
Yes, and it is the future of gaming. Now you're not just dealing with your lag to the server, but your lag to the system that is running the game as well as the lag from their to the server. At least I will have plenty of excuses for sucking. It was reg, server lag, onlive lag, mouse lag. I got distracted when a wild jaminz appeared and blocked the path.