Yes that is accurate it (for some games such as newer ones). As incredibly sad as it sounds. Sony is trying to bank of the casual playing audience since PS Now will be usable on many other product ranges with only a PS3 controller required to do so.
But its disgusting none the less.
That doesn't seem to be the case anymore in the open beta. Prices are still insane though. $3-5 for 4 hours is crazy. $15 for 90 days doesn't seem as terrible though there are some fucking ridiculous things like FFXIII-2 for $30. Sony should enforce a standard rate for all titles on the service and have a subscription model. The crazy price ranges right now will only kill it.