But like, what has changed for the worse in this scenario? All that's happened is that the PC has become a more enticing/viable option. Otherwise nothing has changed on the console side.
Yeah, I mean meeting more than halfway I can sort of get it. If you are a PC enthusiast this is great for you but if you are a console enthusiast there's little upside in this arrangement for you. But at the same time I don't see how having more of a choice is bad. Like before if your main reason for locking into a platform was because they had you locked in with the exclusives, isn't it nice that you can consider another possibility going forward? And if you stay with consoles for the convenience then nothing has changed.
The reason to try something like this is simple. There's lots of maneuverability. On PC there are various strategies you can attempt all the way from going all in and releasing everything day and date on a PSN PC platform to late ports released on Steam just to get additional sales once the PS5 sales have cooled off. They can exert themselves or pull back as it makes sense to do so. There's not pressure to be locked into anything once they make a move. This one game can be a PS5 exclusive, this other can be PS5-first and PC later, while this other game can release on both simultaneously.
When the proposal becomes "well if they're releasing on PC anyway they should just standardize one neutral console and release everything there" it's not clear how this is supposed to work. Sony and Xbox aren't going to share a walled garden. And if it's a completely neutral box then we're just talking about a PC.