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I guess my question is; how would something like this scale? With Netflix and Spotify, the media is the same every time you play it, and even stuff like the Black Mirror CYOA have a limited number of combinations, so it's very easy to cache.

Every game has an extremely high number of potential combinations and outcomes, so it's effectively uncacheable. Fan that out to Steam level popularity and diversity of games and it sounds a bit nuts.

The only way is adding more servers closer to the users, which means Stadia will only offer really low latencies to users living close to the data centers. So probably only people in large cities.

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