It'd be a slight step ahead for anyone with a persistant, reliable connection, but a drop-off-a-cliff for anyone else (a large part of the world). And that isn't even counting the implications for used games. I don't think they were ever going to be serious about that share plan either; there'd be too many abuses.

Edit: and also, as mentioned, reliable cloud processing was never in the cards since they were only ever going to require check-in once per 24 hour period.