Google seems to think they can implement video gaming over IP. And they probably can, my ping to them is only 9ms, less than a frame.
There is just a broad lack of interest in reducing latency past a certain point unless there is a business reason for it. People don't notice 1 second of latency.
And yet, I was able to game competitively from my apartment in Brisbane, using a server in Sydney, using Parsec; usually coming in at less than a frame of latency, sometimes just over a frame. This was two years ago, too. And Australia isn't known for it's amazing internet connections (though mine was better than most).
Just because one group was incompetent doesn't mean another will be.
It has been possible for years to get a total encode+decode latency of less than one frame with x264.
Meanwhile many people are gaming on TVs that impose 3-8 frames of processing lag.
And you can beat most current tech by more than half a frame just by supporting HDMI 2.1 or variable refresh rate. (Instead of taking 1/60 of a second to send a frame, you send it as fast as the cable can support, which is 5-12x faster)
I played over 20 hours of assassins creed through chrome during the stadia beta and I couldn't notice any latency. While it might not work for games like cs go, AR, or bad networks, they 100% have a working product today for assassins creed.
There is just a broad lack of interest in reducing latency past a certain point unless there is a business reason for it. People don't notice 1 second of latency.