Well, that's the thing- I mean I am sort of agreeing with you but also am a fan because I had it for a few months, played a whole bunch of games, and then quit.
I'm a little annoyed by like what the streamer you linked talking about how Microsoft doesn't care about customers and only profit- like, we know, you know? Does anyone think they're smart pointing this out?
GamePass as a product is perceived to have great value because it DOES have great value, in the same way that Walmart has great value even though we justifiably shit on it. For 40 bucks I played and completed The Forgotten City, Unpacking, Genesis Noir, Nobody Saves the World, Raji, A Plague's Tale, Edith Finch, Stardew Valley and The Artful Escape. I finally tried my first Halo and Forza Horizon games, tried out Darkest Dungeon and Riftbreaker. I got out of my shell of the same old games and was able to catch up on a nice swath of "indy" type games. All of the same price as my recent aborted attempt to play the bullshit Sifu which I own.
And then- and here's the good part- I quit. The streamer's point about how you have to "remember" when your subscription ends is not true, you can just quit, it's not a gym membership.
My internet is wonky at times, I guess I just got lucky, I never had a problem.
Important thing is, none of these are "important" to me, I would never play a FromSoftware game if it were offered because I cherish being able to go back to them on a whim. It's called the Netflix of gaming for a good reason- I watch a bunch of shit on Netflix that I wouldn't if I had to put any effort or extra money into.
People aren't wrong or stupid to like it, as is implied in the streamer. Perceived value is real value, too.