Competitive gaming pretty much won't happen on such a platform for a long ass time due to latency.
Also hard pass for me, I'll stick to buying physical copies of stuff for as long as I can as well.
There are people that play stuff like Fortnite and PUBG on phones over cellular connections right now, so I don't think competitive gaming would be that big of an issue. In fact, I think e-Sports is potentially one of the big uses for this, as they'll be able to control the game from their side even more as an anti-cheat solution. Competitive gamers are likely going to have good internet already. This would also cut the costs of playing e-sports even more (meaning less need for sponsorship to pay for gaming PCs and the like - even though esports games usually don't need high end stuff, many still have that just to get the absolute max framerates and best monitors, etc).
Its not for me either, but this is an inevitability. I don't think its all good, but I don't think its a sign of the end days (not saying you're necessarily saying that, but I see some that act like that). Over time it will improve as the technology around it improves as well.
Physical copies I think will be more of an indie niche thing. I think we'll see a bunch of them buddy up to make a console even (there actually already kinda is one of those, Ars had an article on it, its like a Game Boy but also has a crank on the side, some games used it as a sorta analog control mechanism, it'd obviously be well suited for fishing stuff and some others; but I expect something more like a traditional console with certain ones making their own custom controllers for it; but them trading on nostalgic kicks sorta like how vinyl is carving out a niche for itself).