My take is that it'll be the a primary competitive point, nearly as important as the library available. Companies that can deliver the service without introducing these issues will succeed and ones that cannot will fail. If nobody can reliably crack it, cloud gaming won't take off.
Back in the 90s there was no viable competitor aside from LAN parties, and those weren't available to you every evening.
Also I agree that is not a given that "Cloud gaming" will take off. We have emerging VR were latency is absolutely critical, even more so than for FPS e-sports