Where did you get the silly idea that a Netflix server renders movies before it sends them out? Netflix servers are nothing more than service providers, and the service being accessing storage and sending the data from that storage to you. One Netflix server only servicing 20 people is laughably inefficient. The servers don't need power for that. The money is all in the network and WAN bandwidth.
Not sure about the math on the virtual gaming servers either. With the ever advancing computing power of GPUs you could probably provide multiple machines with just one specialized GPU. They will somehow make it worth, don't worry.
The real problem as you addressed is the content. Paying $60 dollars for a streamed game will not fly so they have to use subscription. Publishers will not be willing to put their games for pennies on such a service when they are making millions with directly sold copies to PC and consoles. So any game on a streaming service will probably be at least a year old which makes the whole endeavor really unattractive for a lot of people, no matter the price. I mean look at how many are already complaining about the games for PS+^^
If you demand respect or gratitude for your volunteer work, you're doing volunteering wrong.
