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I think you’ve hit the nail on the head. Epic’s main selling point was it’s lower storefront fee (15% vs 30%, if I recall). It didn’t offer any other benefits for consumers and I think Epic realised rather quickly that the people who are actually supposed to be paying money for all of this are the buyers and not the sellers, and thus they’ve resorted to strategies like making games “exclusive” or trying to bribe players with free games.
Flathub is almost the perfect distribution system for software on Linux. The only thing it’s missing is a billing system. If it had that, it would probably attract more game developers to make their games available as Flatpaks.