It's not just people gatekeeping, developers are usually going to target whatever gives them the biggest return. PC games have been gimped for a long time because the developers make sure the game runs on consoles as well, and if cloud gaming takes off, it'll be even less likely that people develop games with PC players in mind. I can't blame people for wanting cloud gaming to fail; if it's succesful it could cause major changes to their hobby as games are developed for the lowest common denominator.
Not to mention it makes modding dead on arrival. I get it, most gamers do not mod. But being able to write mods and work with Microsoft Flight Simulator in the 90s is what got me hooked on computing in the first place.
Hiccups and artifacts are largely solved and where they aren't, the market tolerates it just fine.
There has been a whole decade of this stuff. The arguments are literally from last decade and they weren’t issues even with the inferior infrastructure then.
I dont think any of these services have proven themselves as a profitable endeavor on their own yet, but as far as advertising or a competitive ecosystem for a larger brand, theyve done really well.