Onlive? Yep, they went under. Honestly, I think it's more of a business model issue. For example, there are plenty of free-to-play games on Steam, but when I tried Onlive they seemed to offer free demos of a few games but had basically no actual free games, probably because it would be far too difficult to actually monetize them. Considering most people who used it probably had doubts about its longevity, it's no surprise that people didn't really want to invest in Onlive. In order for concerns about latency to matter, you have to actually get to the point where people would otherwise use your service to begin with.
Right now, there isn't really a good streaming solution. The cloud-based ones all require you to repurchase your entire game library, and Steam in-home streaming only works across a LAN and most people aren't going to want to set up a VPN to get across that restriction. If there was a system that could just play games you already have on Steam, it would have a much higher chance of success.