So it is a renting service (you do not actually own a copy of the game at all, and when the game is pulled off that is it) which also requires a hi-speed internet access. I guess I am missing something here. Paying big bucks for rentals - when did it become a great idea? You know I would prefer to own a copy and not to be dependent for my kicks on some dudes, so I would stick with the Xbox. Nobody can take MY COPY of D2DKS from me!
Then you should not buy games from Steam, Origin, or the like, because they can revoke the rights to your games, or terminate your account entirely.
Your point sounds reasonable, but you're really just singling out OnLive for something that is inherent in all forms of digital distribution. OnLive is not a rental service any more than Steam is a rental service (okay, technically, you CAN rent games on OnLive, but you know what I mean). Just like I doubt Steam is going to one day decide to remove games from people's accounts just for the fun of it, I highly doubt OnLive will do so as well. That is simply paranoid thinking.
As for big bucks, OnLive is currently one of the cheapest, if not the cheapest, places to buy games. I can list games I've bought at extreme discounts, and games I got for free outright. For example, I received Red Faction: Armageddon for free the very same day it was released in stores. I did the same with F.E.A.R. 3 on its release date. Divinity 2 is currently on sale for $19.99, but most users are only paying $13.99. The closest I came to paying full price for a game recently was pre-ordering Batman: Arkham City for $34.99, as opposed to its normal price of $49.99. Big bucks? More like pocket change.
OnLive is a wonderful service that will allow Divinity 2 to be played on a wide variety of hardware such as low-end PCs and Macs. Maybe it's something you can get into, or maybe it's not. Regardless, I will point out that there is not a single thing you've said in your post that has not, at one point, been said about Steam when that service was coming into its own.
