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The OnLive service is a really neat. They actually started out with streaming 
video gaming. One major thing to consider is that it is streaming video to your 
device. You would want to make sure you have a substantial amount of 
bandwidth if you have more than a handful of devices connected to the service 
at once. It would also be a way around the lack of Flash support on the iPad. You 
still wouldn't be to use a lot of flash games simply because there is no way for 
the ipad to understand when your finger is hovering but not 'clicking'

I just signed up for the free service (they have a tiered system) and I realized 
that it may not be suitable for students if you use more than the free version. 
During the signup it asks for your DOB which made me think about what content 
would be available should you use the browser running on Windows on their end. 
My guess is that it would be unfiltered and that websites like facebook and 
youtube would be fully accessible. It's only a guess because the free version 
doesn't actually let you browse the web. MS Office is the only thing available on 
the free account.

Now that I have fired it up, I can say that it works and responds well. However, 
the free account is pretty limited. I can't see the benefit over using a native 
office type solution on the iPad like Pages or waiting for MS Office to come to 
the iPad (it should be out very soon). Also, it could be cumbersome to sign up 
several users for the service.