When you say the following:
"They should get back to releasing blockbuster AAA games like Ghost of Tsushima 2 that their core fanbase actually care about and stop trying to be like Activision and Epic with this shitty GAAS gold rush."
You are telling Sony to stay in their lane, and that is pure and utter nonsense. They never stopped releasing AAA blockbusters and they never will. They are also fully in their right to expand into new areas, such as this live service push. They are not using that money instead of making single player blockbusters, this is an additional investment that's been added to their budget to allow them to try and reach new audiences with their own published content.
How popular Concord is and how much it differentiates itself from the field will be decided by the market when the game actually releases. It could bomb, it could be a decent success or it could be a huge success, we have no way of telling at this point in time. The Steam CCU from a closed beta more than a month out from launch is not definitive proof of how the game will actually perform, only time will tell.
Sony has not scaled back their live service approach, a couple of games got cancelled which is just the nature of video games. Dev on TLOU Online was stopped because ND had to decide between devoting all their resources to that one game or being able to continue making single player games. London Studios was shut down, which of course meant their live service game was cancelled. We don't have any explanation behind that decision so we can't conclude it was due to any changes to their live service push. Twisted Metal was apparently never greenlit, and it was moved from Lucid to Firesprite, so it appears they were never able to pull things together in concepting/pre-production to get the green light to proceed with it. Same with the Insomniac Spider-Man live service game, it was never greenlit. The game Deviation was making for Sony apparently didn't come together and Sony pulled the game from them, but the game very well may still be in development under a new internal studio under Jason Blundell as a bunch of former Deviation staff are apparently working with him on an unknown project. Sony's still got plenty of other live service games in the works, nothing was scaled back. There's Concord, Fairgame$, Marathon, Horizon Online, potentially Jason Blundells game, Horizon MMORPG, Neon Kois game, and Bungie could possibly have any of the following at various stages of development (Destiny 3, Matter, Project Gummy Bears). Plus they're publishing Convallaria. This is on top of existing live service titles like Helldivers 2, Destiny 2 and MLB.
Keep in mind games take several years to make and Concord's been in development for about 6 years now. The gaming landscape when a game begins development might not be the landscape when a game finishes development. It might get more crowded or it might shift in other ways. Concord may not be your cup of tea but it is the cup of tea for others. We'll have to wait for the actual launch of the game to see just how many others. The open beta this week might help to at least put things into a bit better perspective. I'm personally not certain if I'll pick it up or not, I've already got Destiny 2 and Helldivers 2 on my plate for live service games. I'll try the open beta again this weekend and see how that shapes my perspective on the game.