Personally, I disagree. Xbox already has too many terms and services and such that can be confusing to a casual consumer. I also think Xbox should take a page from Sony’s book and not require Xbox Live Gold for games in Game Pass (which is what PS Now offers, and it’s surprisingly generous) to further entice people to subscribe to Game Pass. I understand Xbox Live Gold is a steady revenue stream for Microsoft that they’re hesitant to touch, and I’m just some idiot on the Internet, but it seems like a good source of good will. Ideally, I think Game Pass Ultimate should be the highest tier, and hopefully it would include DLC for first-party games.
That said, I can definitely see an xCloud-only Game Pass tier for something like $5 a month. That’s the way to get browser/mobile/smart TV users in the door. $10 a month might be too much for casuals.