News reports say free games each day until next Thursday.
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It's a (relatively) inexpensive marketing tactic. Some people stick around and become paying customers. This has been a much more effective way at building market share than something like advertising with Google. Even if there is also nefarious intent, which there may be, you have otherwise clearly laid out legitimate reasons for giving away free games.
It is, but its useless when you can provide no other valuable service besides it. The EGS spent much of its existence missing critical features and generally being worse than alternatives in almost every way, including actively destroying consumer goodwill by bribing devs with exclusivity contracts (with many devs also burning goodwill in their responses).
The foot in the door is only useful if you have anything worth selling inside, and for the most part EGS is luring people in just for them to nope back out.