While you are absolutely correct, I believe the target market for Stadia is more people like my parents, who used to play casual games 10 years ago and then got too busy. They cannot justify owning a console and purchasing $60 games. But they'd be easy to sell on a $5 monthly games on demand subscription.

They will be playing with bluetooth gamepads (5ms latency) on their TV (10-20ms latency) using Wifi (5-10ms latency), so the internet streaming delay of <10ms from an edge server will be barely noticeable.

For example, Stadia is featuring "Lara Croft and the Temple of Osiris" which is a perfect game for high-latency unskilled casual play.