At one point I was considering a Series X, then a Series S...but now I'm just considering picking up an eGPU for my laptop and checking out Xbox games through Steam and PC GamePass, like Starfield, Forza Motorsport 8 and Ravenlok. It'd be a comprehensive setup for me at least through a good while, and give me access to any 1P Xbox games that interest me, and serve as a good emulator system too.
I don't think its a bad console, but I do think it will hold back this gen. But for the casual that plays multiplats, it's a decent console nonetheless, just a bit memory limited.
It'll be interesting to see how things unfold with Series S. I personally don't think we're going to get any 1P games from Microsoft this gen that are pushing the technological envelope like, say, many of Sony's 1P games, outside of the Forza series and maybe some stuff from iD Tech, and probably stuff like Hellblade II, so they aren't going to make a lot of games that, say, NEED the Series X's power in ways beyond sharper resolution and higher framerates.
That'll probably mean more games that visually less intensive or complex where scaling performance up (to Series X) or down (to Series S) will be easier, but it does mean people need to have more realistic expectations of MS 1P this gen from a visuals perspective. I genuinely only expect the Forza games, maybe the next DOOM or Quake, and Hellblade II & Project Mara to be the kind of games that visually rival what you'll get from Sony's main teams this generation. Even then, in some cases it'll come down scale of the game world, we don't really know how big Hellblade II is going to be and while the last footage was nice, I still think HFW looks better at a technical level.
So knowing that, I don't think Series S will be too much of an issue for their 1P given what visual/performance scope most of their 1P will be aiming for. I don't think it'll be much an issue for 3P games, either, since most of them won't necessarily push the consoles the way 1P games do (particularly Sony's 1P), and we'll still have the Switch 2 which will be weaker than the Series S so if there's going to be any system setting the floor end, it's Nintendo's.