Right. The speed of light is a hard limit here. The only way to cut latency is to move closer to the user. The closest you can possibly be to the user is on premise.
Imagine playing your PS4 games (rendered and streamed from your PS4) on your MacBook, or any screen connected to your local network?
I've wanted this for years. Infact in university I even did all the theoretical design to build myself this server. As is normal, I learnt a lot, couldn't spend enough time to make it work though :(
Steam has in-home sharing, which is the same idea but PC games. It's actually pretty nice letting the desktop in the other room do the heavy lifting/run windows and playing some of the games on a laptop. I haven't tried any latency sensitive games though, just things like Civilization.