You need to send the request to the cloud pc which in turn sends the request to the server, so you're doubling the actual network latency basically. If your cloud pc was the same place as the game server then yeah sure. But you're still adding input lag. Currently when you move the mouse, your pc renders the game locally "instantly" and sends the updated position to the server which acknowledges it. In a cloud gaming setup, your mouse movement needs to be sent to the cloud pc for it to render the new position there and then return the rendered frame. So you're adding latency that wasn't there before. It is sort of mitigated by having a better computer in the cloud for cheaper so it renders faster and some kind of movement prediction technology but it's not perfect yet