In what world is having thousands of sought after PS1 and PS2 games available to stream and possibly download not competing with gamepass? It would be objectively better. A game streaming service should not be viewed by only what brand new games it has. It's the entire catalogue. Nobody subscribes to all these movie and tv services to only watch new titles. Pretty sure 80's and 90's movies are popular too. That stupid logic has people trying to spin PSnow's 800 games library as "not that many new games."
PSnow having thousands of emulated PS1 PS2 games with trophies, along with even more PS3 and PS4 games, would get me to subscribe immediately. I'm sure i wouldn't be the only one. I woould prefer a game streaming service for its back catalogue. Especially since you can hardly find games from the 2000's and 90's in stores. And if you do, it can be expensive . Gamepass is useless to me in that aspect then. I like buying and owning new games.
PlayStation fans have been begging for any type of PS1 PS2 PS3 emulation on PS5. If PSnow gets overhauled into that it will very big deal.