The speed of light and the state of the internet doesn't permit many games to be effectively streamed; even great systems like Nvidia's, optimized to within an inch of their lives, feel laggy and weird for a large chunk of users.
It is more likely that we will see a cambrian explosion of games that obviates the need for big company games in the first place. Big gaming companies are big because they need lots of developers, producers, artists, QA, and management and executive suites to manage those. You can even today get code, assets and QA for a tiny fraction of the price you have to pay humans, and that will apparently only get 'worse' for humans over time. It's going to be a very intriguing next few decades.
Wr the streaming, totally agree. People already complain about the latency from wireless keyboards and the "low" 60fps at 4K. Streaming can't match local quality/latency, especially over wifi which is what almost everybody has.
I would argue this actually pushes up the desire for such games. We'll be inundated with games at decent/good games, and our standards will adjust. Maybe something an imperfect analogy would be watching a decent tv series at home but going to the movie theatre for a Dennis Villeneuve movie.