This gives them hardly any information beyond what they already have.
Except now they know the individuals using your Internet.
Sure if you live alone they already can easily put that information together. However if you have a partner, a relative and children all living in one house they now know who is in that home.
Plus maybe no one in the house uses Twitter and Aunt Alice the Twitter user came to visit, does she need to reverify? Your ISP knows that now.
ISPs would be gaining a lot of new information.
I don’t have an Xbox, but on my Switch I can play the game without updating the game. I may not be able to utilize any online features, but if that server is gone I wouldn’t be using them anyway.