They support it for games, I wouldn't really say they've been pushing it though.
That said, I'd love it if Plex or Jellyfin were able to use that storage to cache files locally (eg. stream the data as fast as possible and play from the local copy) to smooth out some flakiness with the wifi between the tv and my home server.
They did push it for gaming at one time, but it fizzled out since then. At one point Arcade was pushed pretty hard, and they presented Apple TV as the premier place to play it.
I've used it for a total of a few hours in many years, almost exclusively for mini motorways. It never made sense to play over the Switch or PS5. I'm not sure who's using it.