I feel like Google is a case study in an engineering only company. Everything is reduced to a technical problem. Incentives are aligned to solve technical problems. No one wants to work on something unless it is technically interesting and new. There is no incentive at all for delivering an excellent user experience over the long term - which usually can't be done with tech only, and involves a lot of dredge work of…
Stadia, from day one, has seemed like an engineering-oriented project. It's a cool tech that nobody asked for and not many people actually want (and has been atrociously packaged as an actual product). I can just hear the kickoff meeting: "We have some of the best cloud engineers in the world, we have one of the biggest fleets of data centers. Not a lot of companies could reasonably implement cloud gaming, but I bet…
When I write Stadia doesn't provide much value for AAA games, we need to look at it from both the gamer and the dev side. For gamers, if money was no object, one is better off with either a decked-out PC (better performance) or a console (wider variety). Stadia's main advantage is potentially being cheaper - which is precisely the gaming crowd which doesn't attract AAA gamedev companies.
For AAA developers, they need to port their game to a different API, then pay the Google tax, in order to appear on a small platform whose users are often drawn in by being cheap and are less likely to pay for your product.
There's no technical advantage for AAA - now that Google has closed their studios, nobody will try to make features that are only possible in cloud gaming in Stadia. If Google couldn't, can you? What happens when you ran into a problem, can you handle Google "support"?
Stadia could be good for casuals. Except it doesn't have any good discoverability features or even a search bar. Cyberpunk 2077 doesn't need discoverability, but indies or anyone searching for them really do. Its payment model (direct 'purchase', no gamepass) is OK for AAA, but not as a good for casuals. And of course, one still needs to port the game which can be difficult and relatively expensive for indies (Luna is just a VM by comparison).
Google could make Stadia better for casuals, but that means doing something less prestigious, no Google engineer will go for that, and they obviously don't understand the business model.
So Stadia is geared for AAA games/gamers, but doesn't provide good features for AAA, and even Google itself couldn't manage to make cloud-gaming-only features. Stadia can be useful for casual gaming, but the platform just isn't geared for that, and Google is unlikely to change that. Likely result is cancellation within a few years.