I think there's a conversation to be had here, but OP, your framing of all this does a really poor job of that.
I disagree with your basic premise that a sub of this type would need to cost upwards of $70-80 dollars. These numbers were arbitrarily selected. The only way people are going to pay for a such a service is if they can equate such a service with buying nearly 2 AAA games a month to get to the "break-even/make-it-worthwhile" stage, and that's a lot of spending on games; I imagine far more than your average game consumer (Enthusiast forum members may be closer to that sum, but that isn't the sole crowd streaming services are looking for).
Further, your options here aren't adequate. I'd be happy to pay for a service as I wouldn't prefer to buy 3rd party titles, but the cost you list is too high for that.
Apple literally just launched a service with a bunch of 3rd party, at-game-launch titles, from devs we would consider AAA when it comes to the phone space. And they managed to do that without charging a large sum for the sub. So I'm not sure where your insistence comes from.