You aren't wrong (maybe a touch hyperbolic) but they aren't wrong either. I bet I could go through my largest game libraries (Steam, GOG, and PSN) and be perfectly fine if I didn't own 80% of those titles. That percentage is going to vary depending on how judicious you are with your purchases, but I'd guess you could come up with a substantial percentage. These subscription services and Valve's refund policy let you kick the tires on things you are interested in without fully committing to them.
If we are to be minimalistic then yes of course there are plenty of games in our libraries that we would be willing to give up. There will also be plenty of games that we regret buying due to poor judgement or being misled.
However I'm a firm believer that the direct connection between consumers and creators is an important one. When I purchase a game on steam and I decide to keep it beyond the refund period what I'm essentially saying to them is "this product is worthy of my money".
On the other hand with the gamepass/subscription model individuals typically aren't making that selection, they aren't "voting". What is happening is that the business that runs the sub service is curating content for the service and they decide what is worthy and distribute fees accordingly (the fee distribution side is a whole other can of worms, it's a topic within itself), the direct connection is lost. Developers/publishers need not fear any potential blowback (or even mass refunds) if a game is poorly received. They've already got their up-front fee. And in terms of the consumers? Well due to the apathy that these services are creating, they will just brush it off and say something along the lines of "who cares, it was free with gamepass" and then move on to playing/trying something else on the service.
The argument might be that publishers/developers wouldn't want to do this kind of thing because it will reduce the chance that they get another opportunity to launch a game on gamepass (or similar service) - I say not so fast.
We only have to look at the example (or lack thereof) that Microsoft themselves are setting with the service with their big ticket releases of late (Redfall, Starfield and Forza Motorsport). If the people who run the subscription service can't be fucked to ensure the games they release on the service are of a high standard, and the consumers who subscribe to said service don't give a fuck about what they are playing (in part, due to the abundance of options the service offers, people can mindlessly jump around from shit game to shit game and be ok with it because their time is being occupied - a phenomenon which in particular can be seen with Netflix viewership), then why exactly should
any third party developer seeking to release on the service care?
The new cities skylines is about to launch on the service, they are already apologising for how shit it's going to be (they are basically telling us the game isn't finished) but they will be getting their gamepass payday regardless. How does that benefit anyone?