Because it will cost more than the current xbox one soc.
The Xbox one SOC will be tiny on 14nm and it already plays xbox one games just fine. They should be able to stay cheaper than sony through the generation while a change of SOC and ram will just increase price.
What you describe above would not sell for $249 or less unless ms eats some cost , everything would be more expensive than the xbox one.
Also why would they need a more powerful low end console when they have scorpio coming out. The goal is to have a good price difference between the two. I would suspect scorpio will come in at $400-$500 depending on its power and you'd want the xbox one at $200 .
If they can't do it at 14nm then I would suspect they'd want the xbox one at 10nm to be their media stick / box
It wont be more expense, that is the point. You are looking at maybe an extra 5 dollars max to the cost of the SOC.
I see no reason why they couldn't have a $199 driveless SKU that breaks even. Correct me if I am wrong, but doesn't MS buy wafers not individual chips?