I understand Xbox's reasoning for doing it since a lot of people can't get a new Series X or Series S console. And this ensures more sales for them.
But as an Xbox Series X owner it's a bit frustrating because they are holding back the potential of this powerful hardware by doing so. Of the games are made to run on inferior hardware, then they aren't being made to fully take advantage of the new hardware. So I personally hope they move away from this policy so I can really see what my Series X can do. I paid a lot of money for exactly this reason.
Series S will likely continue to hold games back once Xbox One and PS4 are no longer supported.
Nonsense , they've been managing to make PC games for numerous performance levels for decades . Consoles , the main difference is that the optimization settings are not as user selectable as they are on PC . The logical thing to do would be to develop for the top performance possible and then scale back for lesser performing systems . Games on the Series S will basically have all the bells and whistles turned down or off and will run at lower resolution and framerate as necessary . Even current MS exclusives like Halo Infinite have higher graphical settings on PC than even the Series X can do .