Can't disagree with your explanation. Just wanted to point out that being both architectures balanced (which is what I expect them to be) then texture quality would be PS5 advantage due to the capacity to stream larger (better) textures and the geometry is something uncertain since as you explained XSX have likely more capacity to draw geometries but then Nanite like feature is dependant on the SSD and I/O speed.
The great question that I believe you agree depends on the games revealed along the gen is how much the I/O interface can help the result. As said if the SSD can send better quality assets due to the speed advantage then perhaps the GPU and CPU can do a little less work could it alleviate some of the disparity? I do understand SSD doesn't do any computation so the performance GAP will always exist, but could the optimization done by devs take care of some of it? Probably not and for the whole gen we will see some advantage on the pixel count, framerate consistency, but for games where both can achieve 4k30fps where would the 10-20% difference go? What type of effects could be leveraged on this type of GPU difference in PC?
There is plenty stuff that can be improved with the difference. More particle effects, higher res alpha effects like volumetric smoke and fog. Sharper shadows for a bit longer range. It will be minimal, ps5 higher res textures, xsx better covering up the textures with effects.