I'm not really sure exactly what all this information is getting at because it mentions incredibly high latency in some cases which is unacceptable as far as my knowledge goes for many games. The only demonstration of acceptable performance in the video is for 0 latency. I mean it all looked fine but latency still affects gameplay quality and response time. Or am I missing something?
You’re missing something. They were demonstrating the tech to show even at high latencies it still works.
Also this is nothing new and this type of distributed offloading has been around for years. It is how super-computers are used to process huge task and delver the finished product back to your workstation. They are just using it to offload up some of the graphic work load now.