I think the sooner everyone realizes that what is good for Microsoft, is not necessarily good for Xbox. The better.
And in all honesty, can you blame them? Microsft, through Xbox, is sitting on a treasure trove of IPs and potentially, revenue. But are hamstrung by Xbox, and doing things that they hope would make "Xbox" great. But the reality is, that Microsoft gaming would be better off without Xbox. And even if they adopted a gamepass strategy similar to EA play, where they only have their own titles on there and for a reduced sub fee, they would be better off than what they are now.
What we are seeing is Microsoft simply taking steps to stop the bleeding that is Xbox, in as "saving face" a way as they can do it.