You aren't going to use these features on extremely old GPUs anyways. Most newer GPUs will have spare shader compute capacity that can be used for this purpose.
Also, all performance is based on compromise. It is often better to render at a lower resolution with all of the rendering features turned on, then use upscaling & frame generation to get back to the same resolution and FPS, than it is to render natively at the intended resolution and FPS. This is often a better use of existing resources even if you don't have extra power to spare.
People made the same claim about DLSS 3. But those generated frames are barely perceptible and certainly less noticeable than frame stutter. As long as FSR 3 works half-decently, it should be fine.
And the fact that it works on older GPUs include those from nVidia really shows that nVidia was just blocking the feature in order to sell more 4000 series GPUs.
They compromised their higher end system with their lower end system. It's time to admit they made a mistake here, and they are only now starting to fix it.
We've already established that the $300 box is not viable for much longer. And since it sold around 1/3 the numbers of the PS5, it didn't even work as advertised.
It has faster memory than the Series S. More importantly, it has more RAM. A few improvements here and there doesn't make the Series S a real next-gen console.
It’s less powerful than an Xbox One X. I think the problem is that they didn’t really think through what a console generational leap would actually consist of.
The Series S will become an ever bigger anchor going forward. Eventually, there will be 3rd party games that just choose not to bother with the Xbox at all because of the Series S.
Except that they can't. The only thing they can do is to give up on the Series S. Sure, that is a disaster as it means millions of Series S buyers are basically on a dead console. But they're headed in that direction anyways.
If they’d taken the Series S as the base line during development, they would have made life a lot easier for themselves.
The problem is that the baseline is actually the PS5. It outsells both versions of the Xbox by a factor of 2. So the Xbox Series S is an afterthought, and always will be.