I am not arguing they didn't overhype the cloud. Sony, MS, and Nintendo all have a lovely history of overhyping, so I take no offense. I am saying that Titanfall demonstrates a real advantage of it.
Look...this is a way to DRM your game and make it seem like you're getting some fancy cloud features. Unless your game is online only like Titanfall with servers doing calculations for stats, NPCs, keeping the world alive 24/7 etc. You aren't getting much special from it.
So you're essentially arguing you don't get much from dedicated servers unless there's game world persistence. Let's tell all those PC FPS folks how misguided they've been... or not.
Here's how the cloud benefits you over a more traditional dedicated server infrastructure in Titanfall's case:
1. Cheaper: devs are more likely to use the dedicated server feature instead of shunting you to P2P hell
2. More flexible: less chance (no chance?) of day one fails because servers get overloaded. In a non-cloud architecture, you are limited to your hardware. In the cloud, you have de facto limitless hardware (sorry, but you're not overwhelming Azure, Amazon Cloud, or any of the other major players. They're simply too big now.).
3. More scalable: there's no point where server maintenance costs for a single server running just a few games become too high. In the cloud, you simply keep renting less and less CPU time and memory. I find it ironic that you guys whine about things turning off - this level of scalability makes it way more likely
they will continue for longer periods of time than in a traditional dedicated server architecture, because there's no fixed cost at the bottom end.
SimCity fell over because they were NOT doing this, FYI. Seriously, read the damn article and then respond. They do an amazing job of laying out the advantages in this particular use case.
Oh, and as for the hypothetical single-player game using cloud functionality, that would already make it online-only, and we'd be whining about that. Seems clear to me that sane devs will have fallbacks when there's no server or internet connection, and it's hardly something to blame MS for.