That’s called a bait-and-switch. Once physical games are no longer a thing, I would expect to see the GamePass library shrink, the subscription get more expensive, or some other unanticipated switch that drives up the cost. Companies don’t operate at a loss[0] for the benefit of their customers. They’re conditioning players to later extract more value later.

0 - https://www.thegamer.com/microsoft-xbox-game-pass-negatively...

The same thing that happened with Netflix. Everybody loved it when it started, now things come in and out of the catalog, quality has gone down, prices have gone up ads have been added, and you need to subscribe to 10 other services as well.

Why are people acting like gamepass is a good thing

My guess is that they'll introduce tiers where your current price gets much less access. Presumably this will be done when customers have no where else to go for the titles that they want. Customers will get angry, many tweets will be sent, many articles will be written, maybe MSFT will even issue a statement saying they will pause the plan until they can "better communicate the value to our customers". Then, they will jam the plan thru anyways and their customers will deal with it. This movie is a remake.