Problem: Guy leading the xcloud charge himself says its not as good as playing locally. So, why would I pick it over local play? I wouldn't.
So, he choose it for play on the go right? Why? When the switch is available to do just that and do it without an Internet connection, and without milking my data caps, and also no lag.
So the problems in my view that makes this unappealing are two-fold: Play on the go has superior alternatives. Play at home has superior alternatives.
In a technical sense, yes, Switch is superior to xCloud on the go because everything is rendered locally. But if xCloud gives me access to my entire Xbox library (which is quite large) and Switch does not, and xCloud runs on devices with longer battery life than Switch, then there are pros and cons to both options. It's at least something I'd consider using for non-action games, especially considering that I wouldn't need to buy a 2nd copy of a game to own a portable version.
I don't think they're trying to sell xCloud to someone who plays at home all the time on an Xbox console.
Never say never. Give it 20 years, more or less. Think back to how fast/reliable your internet was 20 years ago. Now extrapolate 20 years into the future. We'll be streaming all over the place like there's no tomorrow.
I think back to how my TV service from Verizon FiOS was 5 or 6 years ago...truthfully, it was better than it is now. They're devoting less bandwidth to it, so I'm getting more artifacting in my picture.
Business priorities change all the time. In the USA, almost all Internet service is provided by profit-driven companies, and politics are driven by money as well. Even if our Internet speeds continue to improve, there's no guarantee that game streaming won't be throttled into the ground. But one thing will never change: the response time from a gamepad on your sofa to a datacenter many miles away will never, ever be as fast as the response time from a gamepad on your sofa to a box aside your living room TV. Nothing can change that.