That's about the right expectation, and yes to your question.I think people are expecting it to be better than PSNOW because the local hardware on the scarlet cloud will be doing something, while at the same time not being as good as a traditional console.
Is the cloud scarlet going to scale down resolution according to your internet speed, like going from 4k to 1800p to 1440p to 1080p to 720p?
I don't think most people into gaming enough to be on ResetEra in the first place will want the streaming box as their main console, but for another room in the home, or on the road, or for more casual players, or if money is tight, it'll be a better streaming experience than we are accustomed to.