Agreed. Not only would their games make more money there, as their audiences are more similar and want more powerful HW, but it will also be too big of an install base to pass up.
This is not about selling games. In a lot of ways this is nothing to do with video games period.
This is about the CLOUD and who is going to control it ... Microsoft, Apple, Amazon, or Google. This is bigger than video games, Microsoft doesn't give a shit (at the top end of the company) about console wars. They do care a lot about the cloud.
The problem with GamerPass on PS4 for Sony is it undermines the old, traditional business model of consoles that Sony is reliant on. That's why they can't allow things like GamerPass or even EA Access.
But if gaming goes streaming centric, Sony is in trouble. It's gonna be one of the big boys (MS, Apple, Amazon, or Google) that likely controls it.
The Cloud (hate this buzzword) isn't going to mean anything to gamers if the game offering available on it is mediocre. And there is no one cloud to rule them all that all the companies are fighting over. Each company has their own. Yes, this even includes Sony. It's what they use for PS Now. It is only used for gaming, the thing we care about here, while others use theirs for other things.
And no, GamerPass won't be on the PS5 because it undermines the old, traditional business model. It is redundant, because Sony has their own services that do the same thing. There's little reason to have someone else's competing service put on their system. Sony has done tons to move into the future, before the other 2. PS Now and PS Vue are good examples of this. Of course, all streaming is decades away, so right now they are just nice alternatives or companions to one another.