Because 10 years ago people may have said the same about PS3/360 level graphics in our pockets. Yet people still want better graphics (and other benefits). I love console gaming, but there will probably be a point in time where streaming tech and infrastructure is so good that it will be the most economical way to play games and companies to make money.
look at PS5 games, look at Xbox Series X games, or games on PC maxed out running on RTX4090s.
people already complain that games don't "look next gen" or don't "fully utilize next gen hardware". this never happened in any generation before that to such a degree. in reality it's just a fact that we are currently hitting a really hard point of diminishing returns.
we are already at a point where adding more polygons to objects is basically a waste of resources because you wouldn't see the difference anyway. and we are at a point where all that's left to do is to iron out the flaws remaining in game graphics, but improving what's already there will barely result in any noticeable improvements anymore unless you're playing a shooter and want to zoom into every little detail with a sniper rifle
and this is on a 4K screen in your livingroom. Phones actually pushed first for 1080p, then for 1440p, then some for 4K... only for every major company to take a step back and go back down to 1080p and 1440p.
Samsung phones will run at 1080p in their stock settings, even tho they have 1440p screens... why? because it's almost indistinguishable unless you hold that thing right up to your face.
so once we hit a level of performance on phones that's comparable to modern consoles, you will be hard pressed to improve the fidelity on such a small screen in a way to actually make obvious improvements. and just imagine what local hardware can do at that point
Closed mindds have said this about all sorts of venture... why bother. If we ran with that logic we'd still be swinging from the trees.
I mean, we have seen it fail and fail time and time again. OnLive's tech wasn't too far from modern streaming tech. in fact some people back then claimed already that they barely feel the latency... 10 years later and apparently "improved" it failed again with Google Stadia being hilariously worse in many ways compared to OnLive.
the only streaming services that will survive IMO will be the companion services like xCloud and GeForce Now. a fallback option to your locally played options