Not fatal. Although they could be really aggressive with pricing by saying. Sign up for 2 years of Gamepass, and get XSX for the low price of BLAMO. Like phone plans.
This makes me wonder about japan. The culture is more appreciative of a small form factor, then the rest of the world. Also if you don't have a 4K TV, you would still get some benefit from it being able to run the latest games at a lower resolution. If it had the right level of support in Japan...
I also found that i no longer needed optical at all. Pioneer VSX-933 7.2 Channel Network AV Receiver has everything I needed with the right amount of HDMI inputs.
I'd recommend a pioneer receiver if anyone is looking for one. I recently upgraded my tv and then had to upgrade my Yamaha receiver. 4K is too important to avoid the upgrade and i don't regret it now.