You know what? I change my mind. Jim Ryan is right. The lower-specced console IS a bad idea - For Sony. Sony's entire ecosystem has not been engineered to support a lower spec console, and nothing about their system is really about affordability (save for the excellent price point of $399 for the digital console - which they're not even making that many of). Sony hasn't put in any of the work to make a console like this work, and honestly, I'm not sure they have the engineering... time... to even create a lower-specced PS5 that could be expected to run all of the same games as the PS5. PS4 Pro (the easier direction to make a 2nd console) couldn't even guarantee compatibility with all PS4 games at launch. It worked out eventually, but..
But the fact that Sony probably couldn't get it done, does not mean it's a bad idea. Seriously, though. There are people who are going to be buying an Xbox ONE S - 1.3 teraflop console in Holiday 2020. Based on hardware more than 7 years old. Do you think that the Series S, which can play every next gen game the Series X can. Which is targeting 1080/1440p where the other consoles target 4k. It will still sell well. Even in the worst case scenario, where we're getting let's say lower quality textures and 720p resolution in 6 years (which I highly doubt), the things that make next-gen, next-gen won't be held back. You can still do your crazy AI and fast loading and SSD innovations and blah blah. And Series S will play all of those games.