The cloud advantage was one of the main pillars upon which the Stadia business was built, and there just isn't any evidence that this theoretical benefit is working to Google's benefit in real life.
Has better latency != can have better latency. If there's demand for Stadia I assume they could use more of those data centers. But not sure the performance of Stadaia is the problem here, it's far far easier to use Stadia than Gefore NOW. Yet, people don't use it.