PS1, NES, Gameboy, DS.... The generation winner has generally been the "weaker" console, SNES/Megadrive were the only ones on par with each other (and they both beat down the more powerful competitors at the time)
That said I agree it's not really comparable as the X & S are two versions of the same console, the lower powered version is just a less attractive proposition even at $200 less
I do think the lack of disc-drive is a bigger issue though, even people who have switched to buying their games online like to have the option available... look at PS5 in Japan, the digital edition is only about 1/5th of total sales and I think the only difference with that version is the lack of disc-drive.
Microsoft have clearly overestimated the appeal of the S, just as Nintendo have with the Switch Lite (either that or they are trying to push those models for other reasons)