Could you imagine if both Sony and MS followed Google and Nintendo was the only one releasing physical games? They would need to buy another building to hold the money. It would be massive for at least some years.
I could definitely see Nintendo being the lone holdouts of sticking to physical media/owning software in the long run. And they'll be rewarded for it. Game Pass shows that MS is also already starting to lean in the direction of streaming. Sony has PS Now, and I have a feeling will also lean more in that direction going forward.
I defintely see this Google model of streaming everything on multiple devices taking off and doing well, but at the end of the day, there will always be a significant % of gamers who wish to actually own and have control over the product that they shell out money for.
It's for this reason I think there is room for both models. It's like, even though Netflix and Hulu are thriving, Blu Rays still sell, and will continue to sell.