Don't cloud game?

There will always be additional lag from cloud gaming.

If your only option is cloud gaming, make sure you aren't using a VPN, your internet is very fast with low latency and probably most impactful move in to the data center that hosts the gaming hardware

Just the nature of the beast, either run the game locally or get used to it. Those are the options.

you play games like a normal person, with it installed on your computer... not someone else's computer.

welcome to the trash that is, and always will be cloud related anything.

According to the laws of physics, you can't. Light in fiber optics does not travel instantaneously to your location. The farther away the server is, the greater the latency will be.

The only way to reduce latency is to choose a service with servers closest to your location.

I can imagine a day where streaming changes to loading in textures and other data prior to them being required and unloaded once it’s not required

The current method will always have input and then video streaming lag

Invent electronics that communicate faster than the speed of light.

What's your setup? The basic answer is that you reduce lag by increasing connection speed. There's really no way around that, because that's what lag is. Lag is inherent to any kind of remote connection but doesn't always have to be noticeable or game-ruining.

Are you streaming off your own hardware? Is your network running off a VPN? Is your client running off a VPN?

Maybe around 2035ish when we get access to quantum communication hardware, just around the corner bois. In the meantime besides preloading shit, not a lot to do. This is why local run games will always be better.