I'm really happy the Switch is getting PSO2 in one way or another, but having it being played over the cloud concerns me a little. PSO2 is a full-blown action game so responsiveness is important. It would be bad going in on an Emergency Quest like Zephyros, Mother, etc. knowing you've got, say, a 200ms delay on your actions due to the cloud. I haven't seen it in action, nor do I know the tech behind the cloud infrastructure Sega will be using, so maybe it won't be a problem at all.
I feel that the Switch could easily handle a game like PSO2 since it runs on toasters, but the main thing holding it back is the storage. As others have pointed out, PSO2 takes up about 50-60GB of space on PC, so I can see why they've decided to go the streaming route.
I tried it over a year ago and so much stuff like items weren't translated.
The lag was the worst offender. Buddy of mine would be across the map on his screen but right next to me on mine. Not sure if it's lag or server "de-sync" but either way it's stupid in a co-op game.
Items definitely were translated...I've been playing PSO2 on and off since the middle of Episode 2 (about 3 years ago) and I remember the vast majority of items being translated at that point. The English patch translates almost everything needed to play comfortably (items, mission names, menu things, client orders, etc.). Things like superfluous NPC text, story dialogue, and so on are the things that are left untranslated.
I'd guess that "de-sync" issue is a connection issue. I've seen plenty of cases where other people have to "catch up" on my client. They'd look like they're fighting against empty air and then all of a sudden they snap to where they're supposed to be. It isn't a very common thing for me though, and it tends to happen when my internet goes crazy. Sometimes you get into a laggy MPA and all sorts of weird stuff happens.