There are a lot of things that require a generation (of people) to change. For example, the latency of game streaming services is awful if you're used to a local experience, but if you ask a 12 year old that's never experienced low latency, local gaming, they don't even realize it could be different. They'll happily play high latency streamed games.
So when you see things like the investment that's going into things like game streaming and it seems stupid, you have to consider there may not be any expectation of capturing the current market. They're after the market that's in elementary school right now.
That's subjective and dependent on the service and the game. I have Stadia, GeForce Now, and local games ( with some overlap). Latency is minimal and barely visible ( invisible for grand strategy games).
Latency is not a problem with game streaming. I'd say quality is more of a problem. With streaming you are only going to get the image a few frames late which is not bad at all.
That's what worries me. After a long stint of playing entirely only smartphone games, going back to play some older titles on PC was... really weird. None of the usual pay to play friction or engagement traps that are so ubiquitous.
I did not feel happy that the lack of these things that I actually hated was making me uneasy.
Is the memory hole effect really that strong?