Sounds a bit awkward from a technical standpoint. Why not having a saved game file store state variables and thus achieving the same effect of carrying over the decisions of a previous episode? The next episode will then pick them up and use them in scripts and dialogues. Unless, of course, you want to cut development costs by producing a sequel episode tailored to N most popular submitted state combinations. Otherwise the same amount of effort is spent on implementing the possible story combinations, but the distribution of it is pushed online. You are not saying that developers should watch every single incoming savegame real-time and implement an appropriate set of outcomes, are you?
That didn't make much sense technically at all, or I simply did not comprehend it. "Load it locally"? What is the point of a locally stored game data in such kind of a system then? The content still has to come from somewhere - either from optical media or be predownloaded (in which case you still have to pay for the same bandwidth).