Mr Puggsly said:

So as I use PS Now, I can't help but think... "Boy, this would great if Sony really allowed it to be." Its like they want it to exist but also stay out of the way.

I think there are a few factors in play here, namely availability and their current strategy being a winning one for the time being.

There is no denying that GamePass offers incredible value. But GamePass being what it is is a result, at least partially, that MS is failing to get any momentum in the previous ways of making money. The reality is that their hardware sales doesn't appear to be turning heads. Their games aren't selling as well as their quality suggests they could. And whatever they are making from XBL and GamePass is nothing compared to what Sony is making. 

Sony isn't not pushing to make PS Now better. What it was a year ago and what it is now shows that. But there is no need for Sony to make it overly important to their operations right now. The service still isn't widely available (but talk recently seems to imply that this could start to change on a more quicker note) yet so pushing it to be what it can be now makes little sense. And Sony is making a lot of money off PSN as it is now.

If you ask me, Sony is gearing up PS Now to be a better value proposition for the PS5 launch. Wider availability, perhaps longer periods of time some of the games remain on the service (which btw they advertise when they announce the game for their service. None of the recent games being out on are being pulled without notice, their expiry date is known before even being put up onto the service) will be what they push towards.

I think, we will continue to see PS Now grow and become better but Sony clearly don't want to do accelerate that at the potential expense of their current good fortunes from PSN. But until we see what their strategy for PS5 is, it is difficult to say how they see the service going forward. For now they are just dipping their toes in different ways of having the service be used so if they do need to move to this being a primary source for them, they will be able to do so quickly.