Let's call it "PS Ultimate", a merge of PSPlus and PSNow.
Here is the deal in 4 basic points.

1. The price does not change, same value as PS Plus.
2. PS Plus does not give free games every month, instead it gives access to all PS Now games, download and play.
3. Users of other platforms pay the current price of PSNow, "PS Ultimate", merger of PSPlus and PSNow, is exclusive for PS5 users.
4. PS Ultimate users can use PSnow from any PC, the only limitation is that only one device can be active at a time. Ex: If you are logged into the PC, it is not possible to log into the playstation account, the opposite also applies.

Is this a good deal?

Are you saying that they combine those services at a price of $60 per year?

Well, if they're giving people more for the same price, obviously that's better for the consumers. Dunno how good it would be for Sony's financials.

to be honest PS Now is already pretty similar to what you are proposing here
what it's missing is cloud storage and online play for ALL games, but online play for Now games is included in the service

yes. if you pay annual PS+ than $60. same prices as PS+, for 1 month, 3 months, etc.

Here is the deal... you losing the "free games" every month. You will gain PSnow access, but will lose PS+ "free games".

Indeed. you can put thing this way, PSnow but you get cloud storage and online play for ALL games. You lose PS+ games.

Same price as PS+.

Or they could just stop putting online play behind a paywall.

Not gonna happen, too much money on "online play behind a paywall", also every console maker is doing this.
But what you think? Do you like the idea?

Your idea is just adding PSNow free of charge to a subscription most people already have anyway. Sounds like a straight up loss to Sony. So I love it, naturally.

More than anything it needs rebranding. I thought until recently that it was still a streaming service only and I found out it wasnt through this forum, not sony lol

Getting more for less? Count me in.

Won't happen though. Even though I ultimately see both the PS+ and PSnow services merging somehow. Eventually. Maybe in around 3 years.

I totally forgot about this. That's 48 games a year now for the next like 3 or 4 years or so.