What's the difference? As far as I know, you need to be always online in every version of Hitman III to save progress and so on (which sucks BTW).
A game like Hitman that just needs to be online to save progress to a server can work on a crappy internet connection. They just occasionally phone home to upload stuff, can survive interruptions w/o interrupting gameplay... can have poor latency and that does not matter. If your 2 roommates start streaming Netflix, your Hitman game isn't going to stop working.
Hell even games like Destiny that actually have the other players online inside your game can work on a mediocre connection, and aren't effected as much by being in a house with others. P2P starts to suck, but the rest of the game can work fine.
Cloud hosted games require a constant stream of data. If that stream is interrupted, your game is interrupted.. if lag is introduced, your game stops controlling well.. there is nothing the game can do to stop it. A client-side game can handle those interruptions behind the scenes as long as they aren't too bad, and can mostly hide it from you.
And while a typical always online game can work fine on 100ms lag, a cloud hosted game is going to feel like shit.
This might be a big part of our future; but right now? Loooooads of people just aren't even going to be able to play a Cloud hosted game.. loooaddds of people would be able to play it, but it'll kinda suck to control.
Not to mention the Switch's core feature is portability. They need to warn people strongly that this is not going to work well even on most 5G connections, and will barely work if you are moving (on a train, on a bus, in a car, etc.)
Now granted, it's just one version.. those people have the option to buy a copy on a different system.
But there's a ton of differences.