Nintendo have told us they are charging without any value proposition
I mean MS's value was that they were miles ahead of the game when they first started charging
Sony's was that they organically built up a subscription base through PS+ well before going to full charging by providing excellent value in that service. They also dramatically improved their offering coming into this gen
Nintendo can't just half ass it AND expect people to pay
Exactly.
With Games With Gold, you get two games per month, and can keep them for as long as you have a subscription. If you cancel, you can play the games again if and when you re-subscribe. If you were already in the Xbox ecosystem and have a 360, you have an additional two games a month, and you can keep those forever, subscription or not.
With PS+, you get at least two PS4 games a month (sometimes more with cross-buy), and as with GWG you can keep them as long as you subscribe, then re-subscribe to access them again. If you have a PS3 and/or Vita, you have access to even more games, up to 6 per month.
For both services this is on top of now-expected features such as online multiplayer, voice/party chat, cloud save storage, and so on.
Now for Switch's online - includes online multiplayer and voice chat, as with the two above services. Their "free" game offering is where it looks distinctly less like good value compared to the competition. One game per month, and not a recent game at that (NES or SNES only). I'm not saying all games should be recent, but when your competition is providing recent games, it would have made sense to at least try and offer a mix of newer and older titles.
To make matters worse, there is confusion over whether you even get to play the one game after the month is over. Then there is the lack of major online titles for the Switch to make online multiplayer worth paying a monthly fee for (based on currently known software, at least).
Nintendo have to think very carefully about how to price this service unless there are dramatic improvements and additional features they have yet to announce. Given what we know currently, I don't think $5/month or $50/year would seem worth the cost at all for what's being offered.