Ultimately, even with pristine connection, streaming just doesn't look very good on my tv. On my laptop screen it looks fine though. I first streamed a title om Gaikai back in like 2013. I am not very impressed with the progress of the market. And for online shooters and other reflex titles, it just puts you at a disadvantage. That will never be solved due to the nature of streaming.
It is super cool to play a game on my Series X and continue it seemlessly during a work trip on my laptop, but the difference is way too big (unlike streaming films or music). I doubt this will change quickly.
I don't think the console market will go anywhere soon. People like having an affordable "fancy" device that plays relatively graphics intensive titles . Keep in mind the majority of PC gamers play on machines still significantly weaker than both the PS5 and Series X (2,5 year old devices). Look at steam surveys. Furthermore, unlike in the past, traditional desktop PC's are not as common anymore in a household. At least in the Netherlands. I only know a couple of people these days who have a modern desktop and those are all gamers. Laptops and even chromebooks or tablets are the common devices. The investment required to get a solid gaming PC thus becomes higher. For a lot of people, buying a box that plays well on your big tv is a good value proposition.
The physical game market, however, is toast outside of collectors items from shops like limited run games. Most discs I own are incomplete husks of a game with 50+ GB patches day one.