This isn't really feasible using current technology, at least not if you care about player experience. Input lag is killer, and users are far less forgiving of

This isn't really feasible using current technology, at least not if you care about player experience. Input lag is killer, and users are far less forgiving of it than with something like netflix, where lag between the server sending data and the client receiving data is fine (Keep in mind that most pixels change most frames in a first-person 3d game, so it doesn't compress all that well either). Even a couple frames of lag is noticeable at 30fps, and isn't really something players forgive. Not to mention, players tend to expect 60fps now... There's also not really a lot of benefit to doing something like this. Maybe you run better on computers that have worse graphics cards (and I don't actually think you will), but you'll run worse on computers with worse internet connections. You also are now spending a lot more on servers because every player needs a nontrivial portion of a server machine.