how is it better than display boxes?

maybe not quite what you’re looking for but the shadow of mordor series has a liiiitle bit of that. obviously not as city-focused as arkham or spider-man.

does it support keyboards as well? or how else do you control WASD etc?

i can’t imagine that will be comfortable to use for any significant amount of time.

apple does it, and i think Google too. everyone you add to your “family” must share the same payment method. so naturally you will limit that to only people you highly trust.

you should be able to use games within your family completely unlimited anyway.

I would understand the local connection requirement if that was for sharing with people outside your family. that would make it similar to sharing a game with a friend you know in person. without that the floodgates would be open to sharing games with literally anyone online.