Check out this site:http://www.onlive.com/index.html
Powerful Gaming Made Easy

* Connect to OnLive with your TV, PC or Mac and start a game
* Your game runs in a state-of-the-art OnLive game server center
* OnLive connects you to game servers through the Internet, instantly sending your controller actions upstream and the results back downstream at blinding fast speeds
* Enjoy ultra high-performance gameplay on your TV or entry-level PC or Mac

Sounds like a great idea. I hope it works out and is reasonably priced.

Sounds bandwidth intensive I guess if everyone starts capping bandwidth this is gonna be dead in the water?

It is said to work on anything 1.5mbs and up for standard def and 5mbs for hi def. I think the bandwidth capping is going to soon become a non issue. Many ISP are beginning to throttle up their bandwidth. Comcast is going to start offering 101mbs in some markets. They will likely be moving towards packet sniffing and prioritizing certain types of protocols like p2p.

The problem of online gaming remains: you're still playing with wannabe children, so they are going to cheat, lie, and run around like they're on drugs.

True. but this isn't online gaming as such. This connecting to server which runs the game completely on it's hardware except for your controller commands. The controller commands are sent to the server and the video is streamed to your pc. All you would need is entry level pc and fast internet connection. Thus you would no longer worry about game patches, running out hdd space, or having a good enough video card, etc. All of that would be handled by the server and by configured for optimum performance. In theory you should be able run Crysis on netbook.