It wont take off very well. But.. it's a perfectly useful NEXT step for Wii owners. It's easy to use (apparently. Allegedly. Supposedly. heh), it doesnt involve as big an investment for the software companies (DVD/BluRay disc press, fabrication facilities, quality control, blah blah)...
BUT! It'll be hacked so friggin' quickly. A streaming game.. over the net.. they'll stare at the firmware, back up the game data to a hard drive and set up a false server on the local network that the OnLive will be redirected to. Piracy without a mod chip or hardware modification. LOL