With Game Pass (that I already have) stacking up pretty well on XBSX I can definitely see the appeal, to the extent I might actually buy one (despite having a stack of unplayed games on XBO, XB360, PS4 and PS3), the gap to midrange PCs seems to be falling now they've got things like 120hz support. Part of me thinks I should wait a year or two as the prices always come down (I got my PS3 and XB360 as impulse buys a couple of years after release) but the other part of me thinks the XBSX is actually priced very competitively already and with chip shortages etc we could be sat here in 2023 with no drop in price.
As for controllers, they are hopeless / frustrating for FPS and RTS games where you need a combination of both very rapid and accurate cursor movement, but generally ok for most other things and better than M&K for things like driving, fighting and sports games. Now you could argue I've never given controllers a fair crack of the whip (it's so painful I usually give up) but there's a few games like the Uncharted 2 on PS3 I completed with controller and the shooting sections were pretty horrendous, I was forced to persevere due to having no mouse on PS3. Likewise in GTA4/5 I played with controller on PC but would always switch to mouse midgame for sections where you need to aim.
My son plays PvZ FPS games with controller on his PC but there was this trial section that required shooting targets quickly and he couldn't do it, I had to do it for him with the mouse.