I play games with my wife every now and then and it’s great. I wouldn’t say regularly but every few months we’ll play something like State of Decay 2 or Astroneer and get really in to it for a week.
Apparently everyone wants instant gratification and we need to be on to the next scripted moment, then the next one, and the next… No time to admire anything you see.
The best thing about Gamepass is all the non-AAA games that I wouldn’t normally get to play because there is a lot more variety in them.
I very much doubt that people are watching games exclusively though. They are probably working, playing a game themselves (I watch while playing Football Manager etc…) or glued to their phone.