Just like you could do with Netflix or HBO, and I'm sure people do that. But most people remain subscribed. Subscription models for distribution are gaining steam in every other field of entertainment, and many have just been waiting for the when it would take off for gaming as well.
The interesting thing here will be wether Microsoft's "download the games and play them on your own hardware" or Sony's "stream the games from out servers" model will prove most successful. I think both have some businessadvantages, Sony's model having the primary advantage of you not having to actually own the hardware, while Microsoft's model provides a better gaming experience, but you have to own the hardware.
The ideal solution might be a combination of the two - allow those that own the hardware to download the games, but also have streaming available for those that don't.
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.
Anyway Nintendo pass would be insane if you can also take the games on the go (you don't have to be online to play on x game pass).
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.