How does it know what isn't visible? Can it handle glass? Frosted glass? Smoke? What if I can't see the player but I can see their shadow? What if I can't see them because they're behind me but I can hear their footsteps? What if I have 50ms ping and the player is invisible after turning a corner because the server hasn't realized I can see them yet?
To answer all those questions you either have to render the entire game on the server for every player (not possible) or make the checks conservative enough that cheaters still get a significant advantage.
I never understoof why google gave up so early on cloud gaming. Clearly it is the future, the infrastructure will need to develop but your userbase can grow by the day.
I live a bit remote on an island group, and even though I have a 500Mbit Fiber, my latency to the next GeforceNOW datacenter is 60-70ms (which is my latency to most continental datacenters, so not NVidias fault). That makes it unplayable for i.e. Battlefield 6 (I tried, believe me), but I have been playing Fortnite (which is less aim sensitive) for 100+ hours with that.
And under such system, how do you stop people from abusing latency-compensation to make their character appear out of thin air on the opponent’s perspective by fake-juking a corner to trick the netcode into not sending the initial trajectory of your peeks?