Judging by the amount of people saying they've used and enjoyed cloud gaming I'm not as confident as you to make that claim. If cloud keeps making offers good enough such that people pick it instead of building their own PC, the number of personal devices will decrease.

I enjoy low-latency competitive games, and I'd say those are unlikely to get replaced by cloud, because many players notice latency spikes immediately. But I'm a bit skeptical of how much market value can be sustained by people who like the feeling of owning their own hardware, or feel the need to have lower latency in games.

I'm sure if someone built a data center within two blocks of my home and I was able to stream from it, many of these issues would disappear as well.