I mean, it looks like a video of someone playing Resident Evil 7, which is being played on the Switch.
What did anyone expect it to look like?
You can't really get anything by watching these games be played, because the biggest caveat to cloud gaming is the input delay.
I've never had a good experience with cloud gaming personally. Even when I've been to expos and they've demonstrated cloud services streaming from a device that's sat right next to the device I'm actually playing on, there's always notable input delay.
It's not realistic to expect the infrastructure to catch up anytime soon either. Even if everyone had a 20ms ping to their local server that's 20ms of additional input latency that isn't there on the console experience. That's between 1 and 2 frames of delay depending, plus the controller latency, plus whatever comes as a result of the display you're using.