This thing hasn't had a premature death, it's just getting started. If you are skeptical and want a lot of info on this (and you have a lot of time on your hands) check out this gamespot video that's just under an hour long.
http://uk.gamespot.com/shows/on-the-spot /?series=on-the-spot&event=on_the_spot20 090324
It's really quite impressive and although I had my doubts at first, this thing really looks like it's going to work great, they showed it live on stage and it works fine.
They have been working for 7 years developing totally new compression technology to make this work properly, lag won't happen.
Anyway, try to stop poo flinging and just read up on all the info or watch this vid before you slam the idea. I'm just interested to know some points of view.
I'm quite annoyed the beta isn't in the UK though :(