For latency it depends, having a fiber connection to a data center in a nearby city gives 0-2ms latency. Using WiFi adds about 50-100ms. Keyboard-to-computer 10-20ms, computer-to-screen 10-20 ms, software rendering 0-2 ms. So if you have a good Internet connection (and not using wifi) you wouldn't really notice if the "app" was running on your computer or on a server. Try for example ssh -X and start a GUI app/game on a server. The history tend to repeat itself, maybe in a few years we will mostly be using realy lightweight mobile devices connected to a powerful server in some noisy data-center. I do have a hate and love relationship with hardware though, running your own computer is one order of magnitude cheaper then running one in the cloud. So server hosting prices need to go down.