I like this move from MS, now people can see how smart it was holding back leaving Sony less time to respond (not that they wouldn't have known the plans anyway I guess). We all know the main consoles will be expensive, even with losses, and we know there'll be upgrades but an entry point of £250 or buying monthly with Gamepass is exceptional value. Now it's not going to be some magic machine (1440 @ 120? even @60 will be a huge struggle), but it does make sense for casual gamers.
I do echo the fear of holding true next gen games back though, it's not just about selecting low settings in PC games, it's about how they structure them to push techniques forward. It 100% will impact in some way, but we'll see just how well these consoles have been designed.