A lot of unsubstantiated jumps being made in the last few pages re: positioning and MS's strategy. I would be 99% confident in the below points:
1. MS didn't hear about some unhappy dev or tweet about PS5 power and instantly change their whole plan, kill Lockhart, write off the R+D etc. etc. Sorry but that just sounds like a fanboy narrative. Starting back in 2015 with backward compatibility, they have been executing on a very clear, very deliberate strategy to build an ecosystem and service rather than compete head to head for console sales. Lockhart and Anaconda are guaranteed to be part of that plan. And this isn't just the Xbox team anymore - we saw Gaming mentioned by the CEO at their dev conference (Build) for the first time as one of their 3 core cloud platforms. Very, very unlikely Microsoft panics and pulls the plug on their strategy just because PS5 gained a TF on them or whatever.
2. MS didn't talk about two consoles in the E3 video for a simple reason: it would sound confusing. Over a year out, you keep the message simple. You talk about the awesome one. Then later you offer people "same CPU, same SSD, same ray tracing, play every first party title at launch with included 1 month of Game Pass, all for just $299!" or whatever. That's the value prop on Lockhart.
3. Forget xCloud as a major component in the market strategy for console hardware. We already know that wave 1 of xCloud is literally using Xbox One S hardware. You won't be streaming Anaconda games to your Xbox One as a budget replacement for Lockhart, because there's nothing in the data center to run them (yet). Phil Spencer has essentially said in other MS interviews around E3 that they are targeting mobile or giving people an option to play their games when they're away from their console, not trying to push streaming as the primary way to play next gen games. And he was very open about "not everybody has the connection for this." (Of course, xCloud may tie into hardware design, assuming they continue to deploy console hardware into data centers and not go cloud native as Google has.)
EDIT: To clarify, implication of point 3 is that you need Lockhart since they don't want to go to market with only a super high end device and streaming can't cover the low end.
4. If PS5 is indeed more powerful, that almost certainly means that it's also a massive 250W+, minimum $500 beast. We know that Anaconda was being designed with Lockhart in mind as the budget option so that Anaconda could cover the high end of the market and be positioned as premium, so that would put PS5 in the same (or higher) price range. That's all the more reason for MS to launch a $299-399 "budget" SKU. I'm guessing they'd see it as a highly desirable replay of 360 vs. PS3 in terms of pricing, even if the hardcore turn up their noses at Lockhart.