I completely agree with you. This horrible launch will hurt them by a lot. And I believe a lot of publishers and developers that were waiting to see how it landed, are scared to invest in it. That said, I think Streaming platforms, not just Stadia, are in for a unique position. It is incredibly cheap to go try it for yourself when they do an action to attract people.
As an example, I was burned by the XBO launch. There were several things that made me want to try and give Xbox a chance, like Game Pass. But upgrading my PC or buying an Xbox is a cost that I don't want to have to try it. So xCloud will come to save my day and get me to give Microsoft another chance.
Stadia did, and still are, doing a lot of things badly:
- graphics' settings (that is the one that hurts the most)
- prices (tho I think it will not be an issue for new releases)
- hardware delivery
- platform access (this one is unacceptable)
Even then, when they "release" the free version (whenever the fuck it is) with the free trials for both their service and games (I don't even know if it will be at the same time as the release), it will be even cheaper to try it out than other streaming services.