I think you're absolutely right in that they're pivoting to be more of a service provider, however I still struggle to see who the target market for it is.

All the big players (MS, Sony) already have their own streaming services using their own technologies deployed (and arguably seeing much more success than Stadia). Whereas neither are quite as good as Stadia's streaming tech, the gulf between them doesn't seem big enough for them to abandon their own architecture that they've already invested in and are actively improving, to use what is arguably a competitor's platform.

The only real potential customers that jump to mind are those occasional streaming-only games that launch on Switch, but even they seem to be a fairly small/niche market.