third person action adventures are fine

Well, a carefully controlled AC Origins demo seemed to run OK. It may vary in real-world conditions. I think lag will still be a problem there. OTOH, its explore/educational mode might be OK even with lag, because there's nothing to react to... though I personally find any perceptible lag very offputting, even e.g. for a mouse cursor.

I honestly think if it really was just video/audio degradation, it would play out just as you say. My opinion hinges entirely on latency.

PSNOw and streaming in general will continue to grow rapidly

If it's been growing rapidly since 2014, it would be absolutely crushing it by now. But, really we should take the starting date as 2003, when Onlive launched. Smartphones are an example of something that really did grow rapidly: introduced after 2003, and most of the world has one now.

Yes, it is a perjorative term, and probably about as mature as "Micro$oft". However, trying to control a character or a mouse with too much lag, correcting one way then overcorrecting the other really is like a drunk person or clown.