This isn't a bad service for those who can't afford to buy a new PC, or upgrade (like kids who rely on their parents' income, or those with limited income), but for the type of people who use sites like Tom's, this isn't really exciting.
I've used the service before to try it out. I have a 50MB connection, and I wasn't noticing any stutter. However, if you have the cash to fork out $120/mo for a connection like that, you probably have a PC to match. Luckily I work for the cable company so I get mine half-priced
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My friend on the other hand, is using a MacBook (which I constantly rag on him for), and has a 5MB DSL connection. He runs the client through Bootcamp, and gets a decent (not amazing) FPS rating. These are the types of customers they're aiming for.
Trying to be as objective as possible, this is still a very impressive service that will mature over time. I don't think it will be too long before they start streaming 1080i or p content as tech for their render farms get cheaper, and more bandwidth becomes available. Maybe a few years or so. But as far as cost goes, for $120 dollars a year, you're getting a pretty decent deal for unlimited access for the cost of only 2 games, and the initial investment is non existent compared to the 2-3x the amount you're paying to invest in a console, and more if you include games. Hell, that's less than a WoW subscription, which only gives you one game.
I don't need the service, at the moment it's nothing more than an amusing experiment to me, but as my hardware crosses that threshold to where I can no longer play a game at the settings they offer it will become a viable option.