Interesting to get thoughts on quite a few topics. Cool to hear.
I mean.. we always knew it was going to take more work than changing a line and slapping the resolution. (Though, of course, it'd be even better if it was super simple - on the level of One to One X ports or One to Series X ports). The argument from Phil Spencer himself has been: that work will be worthwhile for your studio. That remains to be seen, but over the next couple years, let's keep an eye out on Series S sales. If XSS starts to sell beyond XSX (as I expect it will), the underlying calculus will be clear. Expand the pool of entrants, increase your customer base, and hopefully reap the rewards.
The real question for me is: how much better, if at all, development on XSS (and to a lesser degree XSX) will be once we're fully into the gen. People are worried that it'll get worse over time. I don't think so - the hardware won't change, just how well devs can use it. But it's an open question how much that will improve things.