When? Not sure that’s the right term. I can see two major reasons why this app will never make it out the door under current conditions.

One, unless the app store approval process changes drastically (hopefully that’s a possibility with renowned developers openly jumping ship in protest), Apple would most certainly disapprove it for supposedly running unapproved code, even though technically the server farm is running the code, not the iPhone. If they couldn’t use that excuse specifically, they’d find another. Seems doubtful to me that Apple would allow one app to run many high profile games without running through them first.

Two, AT&T will never allow this to come to pass. The amount of data that would be streaming over their network would most certainly be a concern of theirs, and rightfully so. I would imagine that if this app really does everything it says it does, it would single-handedly take down AT&T’s already fragile network. But of course, they could (and should) just limit this to WiFi. Even if they do, though, there’s still the argument in my first point.

I’d still love to see this come to pass, but I’d settle for it working on my Mac. I can’t imagine that the experience would translate as well on the iPhone’s tiny screen and with limited capacity for controls. The games that will be making it to OnLive’s services are full-blown PC and console games, and touch controls will only go so far.