You will receive vastly different answers by different people to that question, since different people have different requirements (and incidentally you didn’t stated yours).

My 2cts: If you want to use the Series S as your only current gen console on a nice large 4K HDR TV and expecting to be blown away by the graphics you will be disappointed, since the Series S’ graphics looks considerably worse. People may start to fight this statement, but consider this: the Series S held their own against last gen consoles quite well (even the X/Pro refreshes), since the current development for games is completely screwed we didn’t really enter current gen the first few years of this cycle, therefore Series S looked like a great value proposition. If people don’t play current games (which are just starting to begin being current gen only), they may have had a better experience with the Series S tha past few years, than they will have as soon as current gen really is upon us. The Series S - though marketed otherwise - is not a true current gen 4K console.

If you are planning to use the Series S as a companion to a PS5 either for GamePass or dipping your toes into some Xbox exclusives, I’d personally wait for Starfield to come out and get reviews how it’s performing on Series S, all other MS exclusives don’t warrant spending any money, in my opinion.

In case the Series S should accompany a switch (which is a less talked about scenario), graphical fidelity won’t really be the issue, since Series S vastly outperforms the Switch docked.

I’m very contrived situations, where one would be using a 1080p or 1440p desktop monitor and a PC not equipped for gaming or a mac, the Series S could be a nice companion for some casual gaming, but as soon as the monitor becomes too good, the Series S will hurt even more due to the short distance between the user and the screen.