this is going to lead to a trend of all software running on vendor computers instead of users its the only viable way
It’s easier to roughly copy, sure. As you say, examples of that exist. But outright cloning a game with only streaming/realtime content available? No decompilations, 3D asset parsing, or ability to run lots of simultaneous game loops? That would take ages and/or break the bank.
I’m not saying AIs are technically incapable of doing this. Rather, I’m saying that Stadia-as-DRM makes the act of copying technically infeasible (costly, slow).