I do agree that xGov program could benefit from more clarity on its objectives. But IMO, these are simply to support innovation that increases usage of Algorand.
Defining it in more detail would be difficult in my opinion, as usage metrics can be manipulated and their relevant type varies greatly depending on the usecase. E.g. for on-chain applications, that can be TPS, TVL, number of monthly active accounts, assets or smart contracts created, amount of MBR locked, etc. For off-chain applications its even more difficult, even more so on how to compare different projects. Here is where I see voting by the community as a sufficiently good aggregated metric.
Regarding the future of xGov Council, I fully agree that participation of the broader community in such discussions is welcome and highly beneficial.