[shilgapira]

Windows does this very well since at least a few years back. When connected via Remote Desktop any native application will get the behavior you describe, so the UI gets updated with almost no latency.

Applications which bypass the native APIs to render their window contents, in particular video players or games, get a compressed streamed video which has very decent performance. The video quality seems to be dynamic as well, so if there's a scene with very few changes you can see the quality progressively improve.

All of this is done per window, so a small VLC window playing a video in a corner gets the video treatment, while everything else still works like native UI.