Do you think "cloud-gaming" could work on a handheld?

I got this idea from a PSP2 thread... wouldn't it be interesting if the PSP2 (or anything) ran on wireless N & everything was being cloud computed through CRAZY Sony Servers & you got 720p gaming on your handheld. It could pull off ridiculous PC graphics. 
So where is there a flaw in my plan? Cause I haven't thought it through.
/high

wifi stability would be one major caveat
 
its fine for game save storage and progress though

 My best guess, in a few years, very possible.  But unless you are using your own comp, would probably require a fee of sorts.

Cable companies with the bandwidth caps would not like this idea.

Impossible. That sort of thing barely works on hardlined PCs right now, let alone through wifi on a handheld. Also, you would always need to be near a wifi hotspot. that would suck.

The plan isn't really flawed, indeed this will probably happen at some point data wise, although I think graphics and processors will just get small enough so the graphics thing won't matter before wifi is fast enough to send it. The problem is that this won't happen today, or even tomorrow. Why? because outside of American and European cities, wifi coverage disappears. For example such a device could not be sold in Australia, we simply don't have the infrastructure even in our major cities for the device to even operate. In smaller urban centres and the like you encounter similiar issues even in America and Europe. You could argue that we could simply use it in our homes, however that defeats the purpose of it being a portable.

Sony kinda has this functionality on PSP with remote play (playing ps1 games stored on ps3 and streaming it through your psp).   But yah if someone was going to offer this service and create their handheld for it, they need to have a good wi-fi infrastructure to support the users as wi-fi tends to not be the most consistent form of broadband as there can be some interference in some areas that can reduce connection quality.

 The problem is that this won't happen today, or even tomorrow. Why? because outside of American and European cities, wifi coverage disappears. For example such a device could not be sold in Australia, we simply don't have the infrastructure even in our major cities for the device to even operate. In smaller urban centres and the like you encounter similiar issues even in America and Europe. You could argue that we could simply use it in our homes, however that defeats the purpose of it being a portable. "

" @DCFGS3 said:

 The problem is that this won't happen today, or even tomorrow. Why? because outside of American and European cities, wifi coverage disappears. For example such a device could not be sold in Australia, we simply don't have the infrastructure even in our major cities for the device to even operate. In smaller urban centres and the like you encounter similiar issues even in America and Europe. You could argue that we could simply use it in our homes, however that defeats the purpose of it being a portable. "

actually, the same can be said about NA  outside the major metropolitan areas, broadband disappears as well "