At the end of the road, Xbox Series S will be just fine. And if the gap in performance gets too wide, the Series S owners who really care about it will just upgrade to the Series X.The Series S is in no way comparable to the current gen base systems.
It's weird how everyone agreed earlier this year that fast SSDs and powerful CPUs are the key to next gen, but now that the Series S has been announced with fast SSD and a CPU rivaling that in the PS5, the 'held back' argument has cropped up again for no logical reason.