You really think the only people buying a seriesS are hardcore fans on a budget? You've officially crossed into Shawn territory congratulations.
This is what I think: with the Series S only having Game Pass (without a single exclusive) to pull its weight, this doesn't seem much different from the One X or One S running that same Game Pass WITHOUT upgrading to a Series S. But it doesn't stop there, that tiny storage is also used by the OS, which gives that all digital console no room to breathe. By the time you upgrade to one of its proprietary cards, you will likely be spending more than what you would be spending on a PS5 digital by then. Not to mention the name kinda sounds like the current systems anyway, which may or may not be very confusing to the consumer.
But we'll entertain it and say Sony is very concerned about this SKU. Everything here was very obvious, but as usual, Phil Spencer is the only one talking right now.