I honestly wonder how much of this has to do with the fact that it is associated with Facebook.

Purely anecdotal, but in my gamer circles, seeing Facebook mentioned anywhere near video games is met with repulsion. Blizzard's choice to have Facebook-only live streaming means we would never use it (Yes Mom, I didn't call you back because, as you can see, I played Overwatch for 8 hours). As soon as we saw the announcement for Facebook taking over Oculus, we knew we weren't going to purchase it solely for keeping Zuckerberg out of our video games.