Re: A million-[insert currency] idea: For free!
Streaming video is very bandwidth intensive. Wifi B can barely handle low resolution internet videos. Wifi G is a little better, and can usually stream 320x240 or 640x480 video files tolerably. I can't imagine it working well with high resolution video streaming, though. Any reasonable desktop resolution (1024xY or higher) might be too much for it to handle smoothly. Sending back input data doesn't use much bandwith, so that part probably isn't an issue.
Those small LCD screens probably have fairly low resolutions (compared to what you would want to run a computer at normally), which is why they can work with Wifi <N. When Wifi N becomes finalized, dumb Wifi consoles might become more practical.
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