Who wants to play a game with 50ms+ keypress to screen update delay? Sounds miserable.
That would have a number of advantages, come to think of it. For starters, install size could be much lower, piracy would be a non-issue, and there would be no need to worry about cross-platform development concerns.
However, Teardown is in the set of games where it just barely works and only if all the stars and the moon align. I'd characterize it as something like, cloud gaming spends 100% of the margin, so if anything, anything goes wrong, it doesn't work very well.
(Plus, as excited as the companies are about locking us into subscriptions rather than purchases that we own, when it comes time to actually pay for the service they are delivering they sure do like to skimp, because it turns out it's kind of expensive to dedicate the equivalent of a high-end gaming console per person. Most stuff that lives in the cloud, a single user averages using a vanishing fraction of a machine over time, not consuming entire servers at a time. Which doesn't pair well with "you spent 100% of the margin just getting cloud gaming to work at all".)
Other comments are worrying about the streaming and latency but local split screen could also be another use case here.
Teardown, visually speaking, is a pretty noisy game at times, and doesn't give a great visual clarity when streamed at real-time-encoding-type bitrates during these noisy moments.
FPS mouse+keyboard is also one of the worst-case scenarios for Moonlight/GFNow/etc. remote play, because first person aiming with a mouse relies very heavily on a tight input-vision feedback loop, and first person camera movement is much harder to encode while preserving detail relative to, say, a static-camera overhead view, or even third person games where full-scene panning is slower and more infrequent.