Same for Germany, we have the 63€/Month Deutschlandticket. It's only valid for regional trains (but also all local buses, subway and tram systems) though, so for long distance travel you have to switch trains a lot.
And they made it really annoying to get for only one month. It's meant to be a subscription for locals
That coupled with the just much nicer experience of high-speed rail (which is not included in the Deutschlandticket), I'd still call the Interrail pass worthwhile if you are visiting. Not the only good option, but one of the good options
That's a very recent addition though. And a heavily subsidized one at that.
I think this would be more for people that are doing a many week (3 or more) trip. At that point I think most people would want to see more than 1 country in Europe as they're so different
Same for Luxembourg, except it is all (train, bus, tram) free. You can only see so much though.