The way I see it, a refund is a last resort if they are unable to follow through on the other 2 options.

Using your analogy, asking for a refund at an arcade would be more like asking for a refund for a subscription based online only game. In both of those cases you're paying to play for a limited amount of time. This bill has an exclusion for that already, so it's not an issue here.

Think of it this way: Imagine you bought a kitchen appliance (like a refrigerator) that has a screen on the door for creating timers, leaving notes, and checking the weather.

One day, the company says they're shutting down the servers so that your refrigerator will no longer be able to check the weather, sync notes, etc. However, along with this update the refrigerator will no longer be able to keep food cold.

Wouldn't you want a refund at that point so that you could buy a new one? Or better yet, maybe we need a law to tell these companies that shutting down their servers shouldn't affect the core features of the appliance.

This is basically what's started happening to a large number of games. Instead of just losing access to a few online features, companies are locking us out of the entire game, even if they are mainly a single player game. Just look at what happened to The Crew.