Are people suggesting that MS are innovative because they are giving away their first party games? There's a reason for that. People aren't buying the hardware because the games aren't good enough.
But honestly looking at the gamepass list of games and the PSNow list of games. Both suck. I've no interest in almost any of the games on either list. And if I did it's more, 'eh I guess since I have this I'll play that.' But nothing on either list makes me even consider either service.
Yes, MS have been quite bold to sub their first party games, Halo, Gears, Forza Horizon, Fable, Rare, Obsidian, Ninja theory games are pretty big games to have available, people will buy thier new hardware for these games.
Gamepass 3rd party support is much better with more recent games available via download, 100% access, it includes lots of BC titles, a good portion of PSNow are streaming only, which isnt a good solution for alot of the gaming populace, and is more expensive. So even if you want to compare the two GP is the implementation that people feel strongly about, hence being thankful for it to pressure competitors.