http://streammygame.com/smg/index.php Apparently, all the rendering is done on the PC and it simply streams to the PS3. Pretty cool if you don't have the physical space or know how to get your PC hooked up to your TV.
The framerate looks like ass, but still interesting. I wonder if it'd be possible to just run the streaming server on the local lan instead of having to connect to the website, that'd save having to be playing over the internet and you could jack the bitrate up on a 100mbit network.
I had (almost) this exact game streaming idea years ago but I figured that it would be impossible with current technology to have a smooth playing experience. Guess I should have gone through with it. Shit. Of well, they only have a part of what I wanted to do.
I have a feeling this will be the future of gaming. But instead of streaming the game from your PC you will be streaming it from some gaming service. Take the processing away from the console.