Tech people are the minority. The market IS moving towards cloud. It's happened, it's happening, it will keep happening. Stadia may have failed now, but it IS conceptually the future of gaming. It's like you're arguing for blockbuster in a netflix world. We cannot stop this from happening, no matter how many choirs we preach to. All we can do is find ways to make this happen better.
I think it's more constructive (and technically difficult) to accept that the market is heading to full cloud and we as tech people need to find better ways of making this vibe with good privacy practices.
Personally, I would not use anything like this without knowing a lot more about their security. Even then, maybe we're still a few years out from a security perspective before I would feel comfortable storing my passwords and browsing data with a 3rd party server AND pay for it (wild). But, I could see myself doing this if my privacy was ensured.
I hope these guys really focus on innovating in that aspect, and then I hope they succeed big.