In before people say "Who plays games 3 years after they are released?" and miss the point that not only do you not own the games you buy at FULL RETAIL PRICE on Onlive but that they can be removed from the service after 3 years.

What is a PlayPass?

A PlayPass grants you access to play a game for a specified period of time. Membership is required to purchase and use a PlayPass. PlayPass options available:

• Full: Provides unlimited access to the selected game throughout its supported lifetime on the OnLive service. We expect to keep all games supported for as long as people continue to play them, but at a minimum, all current games will be supported for 3 years after their release on the OnLive Service.
• 5-Day: Provides unlimited access to the selected game for five (5) days from purchase.
• 3-Day: Provides unlimited access to the selected game for three (3) days from purchase.

In the highly unlikely situation that a game becomes permanently unavailable before the minimum term of your PlayPass, you will receive a prorated refund.
 
UPDATE: I have made a second thread about a second big problem with Onlive HERE.

Dude, what?

That is why this is going to fail. Why would I want to pay full price to stream my games, when I can get a hard copy that has value even after I buy it?

" That is why this is going to fail. Why would I want to pay full price to stream my games, when I can get a hard copy that has value even after I buy it? "

I don't think I would buy any full games through OnLive anyway. 
It could work well as a pc rental service though.

The more and more I read about OnLive, the more I can't help but think that they're fucking up all good will the initial announcement this product had.

I still don't understand the business model of OnLive.  I just read an article on MSNBC, I believe that's the correct one, in which the writer was describing how games are becoming more cloud based, kinda like how Ubisoft is making their games requiring a constant internet connection, and how this is going to change the industry.  The writer even goes so far to say that OnLive will render consoles obselete and useless.
 
I disagree on so many levels with what the writer was saying, but I'm more disappointed in how OnLive is conducting its business.  They are on the verge of creating a powerful distribution platform for games that we have never seen before, but the whole system is going to be mired in trouble because of pricing issues.  It's too bad really.

And OnLive fails.
 
I'll say it again
OnLive will go the way of 
 

I don't get what's wrong with companies making services like Steam. You pay for the game, it's yours forever. Or as long as the service is there.