I platinumed the ratchet games on PS now and I wasn't that impressed, one of the game felt like I was playing on youtube 2005 video quality. I gave my sister one year subscription to the xbox pass so she can play what she wants.
Yup, PSNow has ways to go to improve quality, but I think the most important issue is lag. All the streaming services have shown that having the best quality isn't the most important part, convenience and price is. Quality just needs to be acceptable (but PS Now still isn't there in most areas). But like I said, a model that combines both streaming capabilites and offline capabilites would be ideal.