"Ancillary services to the grid" means providing frequency...

"Ancillary services to the grid" means providing frequency stabilisation to the network. You know, that thing you claim small peaking plants can't do. Except you're wrong -they can.
This is GE information explaining how their peaking plant GTs do it. I am not party to exactly how Jenbachers do it. They must have something similar worked out if they state they will be earning ancillary revenue.
https://www.gevernova.com/content/dam/gepower-new/global/en_US/downloads/gas-new-site/services/gas-turbines/brochure-primary-frequency-control.pdf
As far as your peaking and baseload numbers go, they're bullshit. Strike forecasts $140 MW/hr average price for supplying power in the peaks for the first five years. You are saying baseload is the same MW/hr price as peaking? Aspirational, dude. Prices are a lot less at noon and 3 a.m than they are when the duck is getting strangled at 6pm. That's exactly why all the base load generating plants are closing and people are building peaking plants.
It's called responding to price signals.