OnLive isn't anything like steam so that comparison can't really be made. I had a friend who used the service some people really like it. I suppose it might be a good idea on a company perspective (although apparently maybe not), however I'm against it because I can't not condone nor promote cloud based gaming. Cloud services have their place but theirs a point where the risk factor gets to high and company's get to much power etc etc.
So The service is fine if you like it and have a REALLY good internet connection but for me I'm not for it.
Not totally surprised their not doing well tho, their advertising was meh at best. They had a hard hitting campaign at first but then kinda faded away. It's an idea that was bound to be produced, So I'm happy to view it's results.