This is true, but the average punter won't see that (which is often a problem with how Rounder services are displayed on departure boards, not just on the Sutton Loop) and will just wait 30 minutes to the next service. (Or, they'll not even use the stations in the first place, and instead just get the bus to the nearest Underground or non-Loop National Rail station).
I can't find it immediately to hand, but TfL did some interesting work into the effect of tph on people's willingness to use a service. Whether it's something you have to "plan" around a timed departure (such as for 2tph), or whether you can just turn up and go (which is more feasible for 4tph and definitely for 6tph). It's also worth considering that with 4tph if one gets cancelled it's not too bad, but with 2tph if a service gets cancelled you could have up to a 60 minute wait to the next service, which disincentivises people to risk it and instead use other lines.
To me the real prize from 4tph on the West Loop isn't 4tph to Streatham, but 4tph to Wimbledon where you can catch the SWML subs which whisk you to Central London rather faster.
This is the exact reason I consider the Sutton loop as a useless service. A half-hourly service in an urban area is too infrequent to be useful, made worse by the unreliability of the service. I work in Farringdon and occasionally travel to Wimbledon afterwards, and under no circumstances I will take the loop train. It's either changing at Waterloo / Vauxhall (for speed) or tube all the way (for a cheaper fare).
The only situation I will take the loop train beyond Streatham is when there are no viable alternatives, to the extent that even including waiting time, using the Central then Northern line then a bus will still be slower than waiting half an hour for the loop.
My "desired" headways on trunk routes are:
* every 4 minutes or less for city centre rapid transit services (such as the tube in Zone 1)
* every 8 minutes or less for inner urban services (such as the Mildmay line and Windrush line, and the tube in Zones 2-3)
* every 15 minutes or less for suburban services (such as the suburban trains to Croydon, Sutton, Watford, etc.)
* every 30 minutes or less for regional services
* every 60 minutes or less for intercity services
which can be halved for dead-end branch line services, or small stretch of curves used only for a small number of journeys. Therefore, my desired headway for the Sutton loop service is every 15 minutes around the loop, joining at Streatham for every 8 minutes to Blackfriars; similarly, the Mildmay line between Willesden Junction and Clapham Junction is not sufficient at every 15 minutes, as evidenced by overcrowding, it should be every 8 minutes instead.