Just.... no. There are many reasons graphics are done client side. Let me know when you figure them all out. Sure, something like this is theoretically possible, but only if you want to pay upwards of $200 per month to play that game. Since it's a lot cheaper for me to buy a really nice graphics card, why not render client side?
I'm not saying this is possible right now. But don't you think that it might be feasible if in a few years bandwidth has drastically increased and processing power has become much cheaper? I can see lots of reasons to keep graphics client-side, but also lots of reasons to move it server-side.
-The game is playable on any computer with a video card strong enough to play HD video.
-Developers only have to worry about one particular piece of hardware: whatever beast of a machine is going to be running the game. Graphics can be on 'ultra high quality' all the time because it will always be running on top-of-the-line equipment. Perhaps the architecture can even be a bit more economical than one CPU + GPU per game stream.
-Exact synchronization is possible: the state of the gameworld that you see is exactly the same as what everyone else sees. Lag is still a problem, but it no longer results in diverging game states - it's just a ping problem.
This particularly allows MMOs to become a whole lot more detailed in their simulation.
This restaurant was advertising breakfast any time. So I ordered french toast in the renaissance. - Steven Wright, comedian