I don't think it's hardware. It's a differentiator. Tell me why I (or whoever) should pick an Xbox over a PlayStation?
What else differentiates it from the PS5 in a positive way?
The thing is, it's not even Games Pass or the hardware. For me, as a PC gamer, having an Xbox would be redundant. Anything an Xbox can do, my PC just does strictly better without a cumbersome UI and additional online subscription.
I own a PS5 for access to Sony exclusives when they launch, instead of waiting 1-5 years for the PC ports. I also get access to PS Plus' extensive classic collection and indie collections, which, regardless of the price of the subscription, broadens my gaming library extensively--something Xbox simply doesn't do.
Why would I purchase a console that only gives me access to the same games on a worse system vs a console that expands my library considerably?
Live A Live on Switch is the example everyone should be pointing to of what a proper 2D-HD remake of FF1-6 could (and should) look like.
It's actually an almost offensive level of laziness, as a consumer, to have a company like Square Enix try to sell me a full-priced remaster collection that only includes partial use of 2D-HD in certain scenes and what essentially amounts to cheap 2D mobile game graphics everywhere else. And the difference is jarring. For the price I'm paying, I expect the full 2D-HD treatment, not...whatever half-assed nonsense this is.
Edit: Also, Octopath doesn't "get away with it" because of filters, it's a game made entirely in 2D-HD, which is why it's consistent. Same with Octopath II and Live A Live.