Knowing that latency was such a problem that they had to take extreme measures like this to save even the tiniest bit of latency really should have been the end of this project.
Why can't we just appreciate a creative solution to a problem?
Your local machine doesn't need to know the input for stadia to work, so why redirect it there?
Stadia had a fundamental physics problem, not an engineering problem. Their "solution" is little more than a bandaid that highlights the fact that the problem exists.
But sure, tell us more with your expertise.
Citation needed. That doesn’t seem to be the case as far as I know. GeForce Now does the same thing and they’re making money.
It added few ms latency to a product that requires low latency. It was easy to avoid it (having controllers talk Wi-Fi on top of Bluetooth is hardly a rocket science). It was likely one of many small projects to improve it.