Paying for the service and then paying again to rent the game is a bad deal. It's why On-live failed and it doesn't make me hopeful for this service.
Other write-ups made it sound like an either or thing.
Yeah, but you'll still have to pay for the service then pay for the game either/or rent the game. Your basically paying to play the game that you bought/rented, online or single player. Its an always-online system. Its OnLive.