This deal will be good for costumers overall. You won't be force in an eco system just to play the game and you will have more option on how to pay for the game you want to play. These gaming coming to cloud and gamepass just open the door for more customers to play the game on hardware they might already own.
This deal will also force Sony to offer more consumer friendly services and maybe add more day 1 titles on their own subscription services. Sony losing exclusive marketing right for COD means they have to invest in their own FPS and bring back their own IPs like Killzone, Resistance and SOCOM.
Microsoft wants to reach a greater audience and is able to offer lower price in order to attract a much larger pool of customers. Hence, Why I think the deal will benefit customers. Eventually, some of the IPs will be exclusive to Xbox and PC but that will only harm Sony; it actually won't harm the customers. Microsoft is already moving toward a service base system rather than locked ecosystem of console. It offer a much smaller barrier to entry to play these games. In the future you won't have to make the choice between which consoles you want to support but rather which game do you want to play. The decision of what device you play on will be up to you. ei PC, Console, Smartphone, Steamdeck, Cloud streaming, etc.