I think this is super smart by Google because if they ever want to try gaming again people won't feel burned, and it can't cost them that much considering their size and wealth. Still it's pretty much what all the doubters and haters said would happen and people will lose their progress and saves and access to games that may not be readily available on other platforms anymore so this sucks.
Buying cloud only access was always a bad idea. Either you should be able to maintain a local copy or you should pay subscription/microtransaction. Always online games like Outriders and Destiny have the same problem. You pay to buy but what you get is really a subscription of undetermined length.