The whole "why should I care" question is interesting. As an individual (not an investor) consumer - I get why people would think this, after all it's "consumer friendly" to get access to games "cheap".
The problem comes from when your cheap access to games leads to damaging the industry to the point where no new good games are being created.
- MS said on record that gamepass cannibalises sales -> less sales == less $$ for studio == more chance that the studio folds/is shuttered
- Gamepass allocates $$ to studios based on "engagement"/hours played == perversely incentivising dark UX patterns, crappier games
- The idea was pushed that gamepass would allow studios to be more creative as they wouldn't be worried about the standard publishing pattern (which let's be clear is in need of a shake up as too many studios are 1 flop away from going under) - however this has not proven to be the case at all, the same types of games are being pushed via gamepass as used to be via sales (open world, awful souls-likes <grr hate those>, standard fps shooters etc) - where is all the extra creativity we were all told would come about??
- We've also seen that games as a whole simply do not sell on xbox - you would expect the sales to mirror the ratio of console sales, but in some cases games sell a fraction of a percent compared to on playstation - so the xbox consumer doesn't consume
In a capitalist society, this model of a studio *giving away* their product to consumers and actively training consumers to never buy any products *and to actively complain that a product wasn't given away* - just doesn't work.
There is enough evidence to suggest that the plan was to try and get Sony/Nintendo to try the same idea, knowing that MS could outspend/sustain this model and drive the other into bankruptcy.
At that point - "why should I care" - well Microsoft would have salted the earth to gain control of the games industry while doing immeasurable cultural damage - that's why anyone interested in games as a hobby should care.
GamePass plays on short-term desires while trying to hide the long-term consequences.
This isn't to say that Nintendo ($80 games), or Sony (GAAS stupidity) are not also idiots this gen.