I mean, it's clear you haven't tried it (not that I would expect you to have a GPU sub and invite). It's not blocky at all, no worse than a 1080p Twitch stream. "extreme" input lag is a bit much, but I guess it depends on region and internet. Here in the States it's hardly noticeable input lag with the upgrade. It's fine to not want to stream games, but it's hard to deny the tech and ability for outreach. Sony will eventually upgrade their PSNow service to PS5 servers, too, and I'm sure it'll run well then just like xCloud is right now.
I don't understand why anyone would want this. I don't want to see any compression, and I don't want to experience even a hint of latency. I also don't want my basic game performance to be dependent on network latency/bandwidth. Especially after some of my recent game experiences ...
I just don't get this from a quality standpoint. I DO get it from a standpoint of wanting to try and increase their subscriber count without selling hardware but ... to what end? It's like selling frozen TV dinners and saying "No no, this is REAL steak we promise!"
And yeah I've tried recent streaming services. IMO you can still definitely tell. And I have low latency fiber gigabit at home.
I don't personally want to play console games on my phone. Or a laptop. Or any other kind of device with hampered inputs, bad sound, and small screens. I like playing on my large tv, dolby atmos capable surround, and on a comfortable couch, with no lag and no compromises. I can't imagine why anyone would want to play something like Forza, Starfield, or Flight Sim on a phone through a browser with a compressed video stream and noticeable latency. Saying it's "no worse than a 1080p Twitch stream" isn't exactly selling it either.
Also this whole thing is kind of ironic when MS actually used the phrase "uncompressed pixels" to market the One X.