ISP has an outage = you're cut off from everything, can't even play offline games.

Data center has an outage = same thing

Once they start paying for enterprise level redundancy for all parts of the system (multiple lines for all homes from isp, your data replicated across DCs, all within reasonable distance to you to retain latency), we get to a point where it's just a worse experience for probably more money, and a constant dependence on a vendor rather than a 1 time dependence. They have tried to make this work many times with the cloud gaming shit, and it failed every time.

IMO, even ignoring the evil part it is a step down from what we currently have (or rather, had before the asshole crew started buying everything so they rot in storage, driving prices to the moon).