Don't you understand that this is utter BS!? If you just for example think about the RAM you will se that this is impossible. The RAM speed in the Xbox one is atleast 102 GB/s. That means you need to have a 102 GB/s internet connection. Now I'm not sure what kind of speeds you can get with fiber in the US (100 Mbits/s is 12,5 MB/s or 0,025 GB/s. 102 GB/s is 4080 times faster (!) than 100 Mbits/s). So you would need a lot faster internet speed for this to work. And this is just talking about the RAM.
But sure. Some calculations would be possible to do in the cloud such as more players in a multiplayer game, drop tables for loot (Diablo 3), AI and etc...
I'm sorry bro, but that's not how the cloud works. The only need for communication is for video and controller feedback.
You are not going to use the internet to communicate with RAM EVER. Nobody does it. There is no need to do it. It simply doesn't work that way.
Source: M.S. in Computer Science. Admin on a University VPN running 5 clusters around the USA. Worked with VMWare ESXi and the Xen Hypervisor.
Since everything virtualized this is going to be the last console ever created. It's abstracted so they can upgrade the system without users buying additional hardware. Guess what? THIS ALSO SAVES THEM MONEY BECAUSE IT FOLLOWS AND ECONOMY OF SCALE.