Xbox Series X hardware is fine. The issue is bugs and bad timing of API GDK not running properly till September 2020 with various bugs and features not working properly, Covid 19 and some devs legit not getting the debug consoles hardware to late. Microsoft does have some blame here. But the Xbox Series X hardware it's self is fine.
Also GDK is a in a great spot now. So I believe you will start seeing better games quality looking games for Xbox Series X soon. But Some Launch titles pushed through some crazy obstacles to be launch titles.
So here's my thinking here(and bear with me, it's early):
Why launch then?
They could've pushed back into Spring / Summer 2021(not even a full year) and probably had numerous issues resolved that have hurt them so far.
I can somewhat understand you want to compete with Sony directly, but it really doesn't matter.
The PS3 launched after the Xbox 360, though it had struggles aplenty with price, etc. Point is it ended up doing fine in the long run despite launching later.
Sony, arguably, has the top spot in consoledom locked. You're not going to catch them, honestly.
Delaying a bit may be in your favor if you show up later with actual stronger launch titles, Halo Infinite looking good, not having to chuck raytracing into patches, your system power is shown more efficiently, more supply, more BC compatibility, etc.
It feels like a "We gotta get it out there now" kind of situation when I argue it didn't really need to be.