You describe a scenario in which cloud gaming should be flourishing but it's not. Ask yourself why. First controllers are not cheap. £50/$60 isn't cheap for a lot of people and decent controller makes all the difference. You can subscribe to Netflix for one month for less than the cost of buying a newly released Blu-ray Disc. It's not the same cost proposition at all.
Next you need a TV/stick and good Internet to get the service but the biggest barrier to them all, you need that service. The immediacy aspect, that spur-of-the-moment to try something needs to be in your life already. Most smart TVs have all of the premier streaming clients - Amazon, Netflix, Disney+ - pre-installed. They promote their use when the TV is being setup. People need to know about it as an option. I have never seen an ad for PlayStation Now, nor Microsoft's option either. I would wager that most consumers who may be interested in cloud gaming, probably have no idea it's a thing even available to them, or may think it's going to be complicated to setup.
The reference to at 2600 was a joke BTW. I know that gaming - indeed all media - being served remotely is the inevitable future. It's just a staggeringly long way off. Over ten years. Folks saying that the next generation of consoles will be the last are not looking at the barriers to widespread, affordable internet. The reason there is an expansion plateau, with some locales get faster and faster and others do not is because of very expensive logistics of deploying infrastructure. There is a perceived need, but cost recovery makes investment unappealing. That's not going away.