That said, don't loose heart. OnLive has come a long a way from what it was like before. I signed up during the Founder's promotion, which was right after the initial public opening. Back then, no wifi, 5Mbs, dual core processor 4 gigs RAM. I have a good fast service, and I'm within 50 miles of Palo Alto, where OnLive headquarters is located, and use to get service issues based on bandwidth or ping times. I was also using WiFi via an Ad Hoc setup from a laptop PC because the only computer that could run OnLive was my HTPC, which was no where near my router or any other ethernet wire.
Now, the requirements are so much less. I'm sure they're still working on trying to better their algorithms to add even more efficiency, which will mean the bandwidths requirement will probably lower some too. OnLive has stated the can do 1080p video but the bandwidth requirement for the avarage household is not sufficient. I assume they want to bring 3D as well, and that will require even more bandwidth. Thus, it's fairly safe assumption, they want to improve it so they can bring the higher resolutions.
Unfortunately, you are experiencing the issues of what being an earlier adopter.
Although, it is possible that some games just aren't working properly on the Android client. I'm not a programmer, so I may be off. From what I read, for games on come to OnLive, there is some optimization that has to be done. I'm not sure if OnLive or the developers do it. Thus, it's possible some games may need optimization for the Android client, beyond creating touch inputs.