What do their users want though? I am a user and have some counterpoints.
I have been a premium user of spotify for over a year now and I actually really love it. Maybe I don't use as much features as other people do.
I have a bunch of playlists (18) and love their discovery feature as well. I listen to it every time when I am at work - or doing chores at home - and sometimes during the commute on my phone. Same goes for 2 family members.
I don't miss the lyrics feature - I used it occasionally but it was shortly after I started using spotify so it's hard to miss something you have not really had the opportunity to use for a long time.
I have used their client on Windows and Mac (work), Linux (home) and mobile (android) and actually did not have issues with either of them. For what I use it (listening to music..) it does everything I want and does so perfectly.
Storing songs offline? No thank you, if I wanted to do that, I would just torrent the albums I like.
About the Hi-Fi option, they do have a HQ option but I am not sure which "quality" that actually is. I'm not an audiophile though, but I bet the average user isn't. So they might not care.
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But, like I said, to me it is essentially just a cloud music player and should not be anything else. I don't use any of the social features, I'm surely not an audiophile, and I can actually not compare it to Apple Music.
(Sidenote: The pricing is really good as well, at least the premium model where you can add family members).
EDIT: Just to clarify, I'm not affiliated with Spotify, and as always, this is just my opinion and yours might be different which is completely OK. :-)