Games stores (for better or worse) are expected to have an ecosystem of services of varying importance:
- Friends list
- Text & Audio chat
- Cloud saves
- Automatic updates
- DLC installation
- Sales and Discounts
- Curation, suggestions, and browsing
- Achievements
The Microsoft Store has most of those, more or less, but the experience is not ideal.
The social services are tied into the Xbox app which works okay, but is quite complicated and Microsofty. Also PC gamers might not have their friends on Xbox or maybe it has their CoD friends, not their AoE friends, etc.
The MS store is not purpose-built for games, so it makes it a poor place to buy them. It's hard to find "real games" on there because you have to sift through mobile games, photoshop, movies, and Xbox controllers. Many PC stores make a big deal about sales with purpose-built home pages, best seller lists, weekly sales, event sales, newsletters, etc. The MS store does not have sales often and if they do you're not likely to hear about them. PC stores put a lot of effort into discoverability. There's personalized home pages, followed curators, recommendations from friends, and detailed search systems with a multitude of tags and sorting options. You can search for a recently released co-op action-rpg with steam controller support and sort by recent review sentiment. The MS store, by comparison, is a mobile app store on a computer.
PC Game stores are expected to have fast and reliable downloads. Steam can consistently download faster than my hard drive can write, and can reliably resume interrupted downloads. Steam can validate the integrity of game files and re-download them if necessary. Other clients seem to do fine as well. Download speeds from the MS store are reportedly inconsistent, and it has (or had) no ability to resume interrupted downloads. For weeks after the ~100GB Gears 4 was released exclusively on the MS store, /r/pcgaming was full of people complaining that the download was interrupted at 95GB and had to start over from 0.
All of these problems are solvable. I believe the download issues have been fixed. The store is already the best place to buy "Play Anywhere" titles if you have an Xbox, simply because you get it on both platforms. But MS has a long way to go to make the store pleasant to use and to win back PC gamers' sentiment.
One practically unsolvable problem is that the store doesn't exist on Linux, macOS, or Win 7, which matters to some portion of games and some portion of gamers.