Well, first of all, cloud streaming of games sucks compared to local play. It sucks in terms of latency, image quality, customization and consumer control.Gakai render a entire game in the cloud, so why you guys can´t believe that some parts of the game can be rendered or processed by a cloud?
However, even beyond that, it is actually more technically feasible to render a game entirely "on the cloud" and stream an image than it is to somehow distribute 75% of the CPU/GPU calculations "to the cloud" and do the final 25% on a local system. That is simply hogwash.