They screwed up. Game performance was worse than it should be this service should have rivalled next-gen in performance with zero upfront costs. Instead the performance in some areas failed to match Xbox One X.
Any hype was also killed by them destroying their one advantage (no hardware costs) by having the stupid founders edition (£129) be the only way to use the service for the first 6-8 months.
It's not impossible for the service to make a comeback, but they really messed up the launch big time. Should have waited a year.