These issues are more of a problem with the service not being popular enough rather than Sony being incompetent. They didn't expand the service because it wouldn't have been profitable to. They discontinued the service on those devices because nobody was using the service on those devices. Calling these moves incompetent only belies your perspectives as outsiders. Only Sony has all of the numbers and at some point they need to stop throwing good money after bad and focus on other parts of the business
If they are facing this issue with that mentality than it's reason alone to write them off.
They don't deserve to be handed support just by showing up, they have to make it worth it. Ps Now launched with only Ps3 games, a small collection even, limited to 720p, with widespread issues with image quality and response., also with extremely low availabilitywith apps for TVs, but phones, or even Pc initially, and gregarious pricing, not to mention that back then some titles were only available by directly renting instead of being part of the whole subscription.
Sure, they did improved the service, making it slightly more available, added ps4 games solved the pricing scheme... And some reports of even the response improving... But instead of expanding availability they reduced it, removing supported platforms, and the major improvement of the service since launch came after the competition brought a more competitive offering with gamepass, only then they started offering downloads.
I feel like I'm going in circles with these arguments, but to put it more directly Sony simply does not have a vision for the streaming future. They bought gaikai for whatever reason, but never realized it as a platform, and now Ms and Google are arriving with more interesting propositions.
Ms, by making the service essentially a streamable xbone console you can play from everywhere. And Google by offering a compelling platform others can use to create their own streaming service.
See the difference from Psnow and Gamepass, how both were announced, delivered, and expanded. You can see play anywhere, gamepass, and now Xcloud have a clear vision on where MS wants to take xbox. They are compliment each other and and points to the same direction they have been saying they want to go since Phil took over. Psnow seems it was just a thing Sony felt it would be nice to have, and now are trying to use it to increase their revenue now that the other player has show some pointers. Of course, the service that MS is providing could very well be provided by Sony too, and they have the PSone and Ps2 library to tap over, but it doesn't matter until they start investing and doing something with it.