Well I mean… ESO is in GamePass. So yeah.
While it’s true that there’s a lot of AAA trash out there there’s also some really good AAA. And there’s a lot of non-AAA games in there, too.
Microsoft Flight Simulator, Outer Worlds, Wolfenstein 1 & 2 (even if the 2nd one has an awful forced political message that is literally taken from the textbook of the enemy), Rainbow Six Siege, Morrowind, Skyrim, ESO, The Forgotten City, Tetris Effect, Star Wars Jedi: Fallen order, Prey, Pillars of Eterni9ty, Ori and the Blind Forest, Ori and the Will of the Wisps, Mirror’s Edge (not Catalyst, yuck), Minecraft, Middle-earth: Shadow of War, Limbo, Halo: The Master Chief Collection, Halo Infinite, Hades, Forza Horizon 4 and 5, the whole DOOM series, Dragon Age: Origins, the Dishonored series, Crysis 1-3, Cities: Skylines,
And these are just the games I know I like. Tere’s a lot more.
Now I’m not suggesting that WoW needs to compete directly with this. It’s a completely different beast and as you point out many of us can afford both.
However, it really calls into question the content release cadence on WoW. It’s kindda pathetic, really. Microsoft are adding 5 new games every month and Blizzard can’t even manage a patch in over half a year.