Microsoft should just release a $149 Software upgrade for Xbox S/X that allows/requires full mouse+keyboard UI and access to Windows store apps (Windows store would probably need to be cleaned up and properly curated), Edge browser, plus printing support.

Then in a few years they could also release a portable version of the S, with a battery, 15.6" 1080p 75hz screen, and a few hours of battery life. If you reduce the size of the cooling system in the S (possible with 5nm), and have an external PSU, this is definitely possible.

Full Windows is basically overkill for the average consumer.