Series S, being the weakest of the three (S, X, PS5), weighs down the scoping & design scaling of most 3P AAA titles, to provide good performance for the S and basically targeting the scope of their games to be within that scale. You can't replicate something like HFW: Burning Shore's final boss fight at the scale it is, with that fidelity, on hardware like the Series S.
Maybe at the tail end of the generation when the x and PS5 are absolutely maxed running games at 1080p 30. I even think series S will be phased out on the next gen cross generational period for anything AAA.
But so far,games have not been limited by the series S. Some look hideous on it like Alan Wake 2 but nothing a console player that experienced the 7th generation can't handle.
Series S works because since consoles are more balanced now, with stronger CPUs, studios also design their games with 60 FPS and up in mind. Console Gamers can play at higher framerrates now and like the option.
That is what truly weighs down the scoping of games. On the past generation they went for graphics above all else at 30 FPS because GPU and VRAM for higher resolution textures were the main strengths of those consoles.