This is fine for a persistent world like an MMO where a subscription is access to that universe. But I feel like that isn't what they mean here because folks have been comfortable with the MMO subscription model for decades.

Yeah, no. This is likely just them trying to justify discontinuing a product that has been paid for. "What's that? You wanna play that game you paid for 20 years ago? Sorry, it's no longer available. But you bought it? No you didn't. You don't own it. We said you don't."