No shit it will be left behind just like everything else, so did the SNES replace the NES 18 months after launch? Predicting that a new console with the same cpu as high end version and memory scaled down for it's target resolutiions will be "left behind" and reduced to a streaming box in 18 months is a pretty fucking stupid prediction but keep on believing. This is especially bad if you consider that the USA is obviously MS's most important market and internet service here is not going to be ready for streaming in place outside of major metro areas for years and years.
I think we're getting hung up on the 'left behind' bit.
The XSS will be the lowest common denominator, in the same way that my old GTX970 will soon be a dinosaur.
Your comparison of high end cpu is now, right now, today. Not in 18 months. In the space of 3 month, we have gone from the XSX being an unbelievably powerful, cutting edge tech, to middle of the road, thanks to Nvidia. Do you tink AMD will sit on arse for 3 years or will they compete? When they do, Ps5, XSX and XSS will be left in the dust.
Now, on to streaming. We all know that it will happen, we all know it's coming. Why? Well, because Microsoft are really good at giving us a heads up on their strategy, years in advance. Peter Moore during the 360 days wanted the xbox to be the centre of the living room, an all in one entertainment box (sound familiar? it should, that was the vision of the xbone) then Microsoft wanted a daily check in online, no used games, games tied to your account and no-one elses. Aside from the very last point, gamepass ticks all of those boxes. Streaming just goes one step further, as Microsoft will be able to put Gamepass on any device that can use a control pad.
But wait. Why put Gamepass on a Tv or Firestick and lose out on revenue, when Microsoft can sell you affordable hardware that will be able to play most content at a lowered resolution/framerate? Well, why not offer that affordable piece of kit, with lowered spec games AND offer the option to play the cutting edge of games, with all the bells and whistles, via streaming? MS rakes in money from subs and usage of Azure, while competing in the server space against Amazon's jungle of servers. Remember the Sony and MS agreement? Sony know MS is their best competition, which is why they backed them over Amazon, when it came to putting PSN on servers.
Finally, the internet. Yes, you Yanks have it shit internet wise. Land of the free apart from the internet cap. However, 5G is just around the corner, how will that look in 2-3 years time? Which companies or technologies will rise and fall between that time?
I remember, 20 years ago, it cost me 10p to send a text message on my phone. It cost me to make a phone call because i was using 'data' and services. Nowadays? I can use my wifi, whatsapp and Facetime to send messages and make phone calls for free*. Or i can use 4g which is exponentially cheaper than 10p per text.
In summary; Cheap as chips hardware gives you the option of playing locally at low res/frame rate, or you can play 4k/120fps Via streaming, which is more financially beneficial to MS. You are locked in to their ecosystem, MS kill the used game market, take 100% of the profit through Gamepass, sell subscriptions (Satya is happy) and you're using their servers over Amazon's, taking market share away from them.
And you say my prediction is fucking retarded? While you're free to disagree, to do so you must ignore the last 30 years of console gaming and its' direction in to the mainstream and living room.
Well, if you think that one was retarded, try this one on for size; Console gaming will split in to three sectors; Local hardware + handhelds which will be the bottom rung of horse-power, VR standalone which will become the niche for enthusiast gamers (it will eventually break in to casual territory but not for 10+ years) and streaming, which will occupy the highest end of tech. Nintendo, Sony and Microsoft. While there will be some 'Venn' overlap, these will be the three main stays. PC gaming will do all three.