to be fair you could say the same thing for the ps5 too. At the same day, it is the ease of use that matter...Changed a few things around and got this:
5500 XT 8 GB GDDR6 ($105) (similar pixel fillrate, texture fillrate of Series S GPU, higher TF, more RAM bandwidth for GPU)Veineda 8 GB DDR4 ($27)Samsung 980 500 GB SSD ($45)AsRock A520M-HDV Micro-ATX AM4 ($69)AMD Ryzen 3700 8C/16T ($105)
Those are the main components...a bit around $350. With casing, fan, PSU, cooler and controller would probably be around $450 for something somewhat above Series S in performance (more RAM, more GPU RAM, faster SSD, better CPU, more capable GPU).
The benefit with this approach being, you'd have a true PC gaming box, will full Windows (or Linux) driver support, full freedom for various storefronts, and if you want it, VR compatibility. Something Microsoft still won't offer to its own Xbox customers.
I think the Potato is a big compromise for console experience, will prob gimp the whole experience for other consoles too.