Now I know cloud gaming(that is when it completely replaces disc based games and digital downloads) is years away, but does anyone else think it will kill game modding? I mean if you can't access the textures or meshes there's no way to edit them and you couldn't even make things from scratch, because again you can't access the games file structure. So unless a game has a user created content option built into it like Infamous or Little big planet there's no way to add content. This means no new equipment, npc's, quests/missions and most importantly unoffical bug fixes or patches.

Also how would official dlc and expansions work? You won't own anything, so what you pay more for the version of the game with the expansion than the regular one. Like say this happens with elder scrolls 6/7, it's 29.99 to rent the vanilla game for a month and 34.99 for the version with add-ons?

On the bright side it will put an end to the constant pc/console wars.

No, because cloud gaming will be rejected by the market (again). Everyone that subscribes to the "Master Race" thing is getting ready to laugh at PS4 owners when Sony brings out their crappy "backwards compatibility" cloud play. It's very, very likely going to lag, look like trash, and have downtime just like OnLive did. Repeat of Sim City / Diablo 3 is expected.

Cloud Gaming will be just another Genre, so some games will support or use those functions, some won't. Cloud gaming can offer a rich gaming experience if the technology is leveraged properly. That being new content being added, complex NPC calculations being done on the Servers, those kinds of things. But, modding a cloud based game will have challenges and you will have to factor that into your play decision.

What does modding have to do with the PS4 cloud gaming that has to do with backwards compatibility? Even further more, modding console games in general is not easy. If you have old games that you downloaded on a particular console, you mod them for that one, not the PS4.