> This service is for people who don't have that "expensive piece of hardware".
Right, but those people also don't own Xbox games. So this goes from "add-on fee to play the games your already own conveniently", to "buy a $60 game and then pay $/hour to actually play it"
Are you saving money in the second scenario vs buying a console? Almost certainly. But it doesn't feel that way to the person paying a big whack upfront and then also stacks of game time.
There's no need to overcomplicate it with "feelings", the math is fairly straightforward. The cost of games is the same in either case. Beyond that you either pay $800-$1000 for a console/$2000+ for a gaming PC, OR $10-20/mo for cloud gaming. Depending on your needs #2 might be the better option, which is why services like GeForce Now are so popular.