I guess that’s debatable, depends on how you define what “it runs” means. PC gamers with dated hardware may be fine with playing on 1080p, while on the Xbox Microsoft might veto if it doesn’t run on 1440p and 30fps. Of course weaker hardware won’t run everything faster hardware can, you can’t just sprinkle infinite magic optimization dust on a game, there are simply limits what’s possible with weaker hardware, and once you’ve reached them you can’t just shout “enhance” like in CSI Miami.
Not in my opinion: if you read the article, it clearly says that Microsoft enforcing a level of quality for dated hardware leads to devs abolishing features that the hardware series S hardware won’t be able to support. They also can’t decide to not support the S unless they abandon the Xbox series X as well. It leads to lower quality games for everyone, not just series S owners.