It's funny that you think that because it's absolutely right of course, and it's a big part of what killed microsoft hopes and dreams to "forget the xone era and try and catch back to what we achieved in the 360 era".
Unlike Sony, MS didn't make both console equal beside optical drive, they made the S less performant and then made it so any game must have every features on both S and X. What this means, in effect, is that player buying the S don't lose out, that game can cut features on Xbox (rather than have it on X but not on S), that xbox dev is standardized on the S stopping the X from showing it's capacilities, and that microsoft can't react to the ps5 pro let alone use the occasion to solve that early mistake because according to their own numbers something like 70+% of their sales are S.
Coupled with the complete lack of worthy first party or dedicated IP beside Forza, this destroyed Xbox ambitions. Microsoft is going all in on gamepass, and it might very well work out in the end (I don't personally think so not until their fix their internal quality game developpement issues, and it's starting to show cracks), but they're not doing it after a nice analysis but because they realized they've so absolutely lost yet another console generation.