Yes they do, that is true however I was assuming the value proposition for onlive involved greater/cheaper access to games and not simply the low hardware requi

Yes they do, that is true however I was assuming the value proposition for onlive involved greater/cheaper access to games and not simply the low hardware requirements. xbox live is also much cheaper and isn't required for single player games. An xbox arcade is 170.00 dollars new - the same price as 11 month of the onlive service and you don't have to maintain a subscription to keep access to the games you have bought, yet you have the same advantages as onlive in terms of not having to upgrade your hardware every year to play the latest game.