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The tide isn't turning globally, PS5 still leads Xbox Series by a significant margin. Xbox pretty much needs Game Pass to thrive at all.
While we would win as consumers if PS Now or a new service had way newer games (and they stayed on longer), Sony will almost surely do just fine without adopting such a strategy.
Game Pass is a far better value proposition in terms of the prices you need to pay to buy the games yourself (namely the new releases). PS Now has far more games, though. And many would argue that the first-party titles on PS Now are higher quality than the first-party titles on Game Pass.
Sony needs to improve PS Now, that much I agree. The subscription numbers are super low given how many PS4s are out there, and how many PS5s there will be in the future.
But they probably won't have to make their own Game Pass.

Lifetime Sales Predictions 

Switch: 144 million (was 73, then 96, then 113 million, then 125 million)

PS5: 105 million Xbox Series S/X: 60 million

PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)

3DS: 75.5 mil (was 73, then 77 million)

"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima