Nah, it's going to be fine. Superior RDNA 2 FPS/watt ftw!
So are you arguing for a neutered version of a PC in the form of XSX? I don't get it.
Yes, obviously it's still not as small, the point of the comparison is how it changed relatively between generations. The size difference is much smaller now, and mostly a moot point - if you want to fit it in the living room then it's small enough to rival a console without looking out of place. You can make ofc an sff as small as an XSX too, but too expensive for little reason (other than vanity). That is all besides the point.
Price/performance is way better on PC, that's not even a debate. Not when consoles have to deal with paid multiplayer, higher prices, being at the mercy of publishers for back-compat or new versions that actually allow the hardware to run the games past their original 900p 30fps last-gen level, fewer offers/shops, and no ability to let the console pay for itself via lending out compute power (crypto or other) and on and on it goes. There is a higher up-front cost for a PC, yes, but total cost of ownership is better in every way. If you don't want to bother with any of that, cool, but the argument remains.
They are developed first and foremost, and in fact I'd say only, for the PC and on PCs. The only difference is there's a specific setup for the consoles & maybe a different API (for PS mostly; Xbox's API is almost identical with DX12), but otherwise it's PC-type hardware, x86, GPU straight from desktop with a few nicks here or there. It's really, today and since last-gen, just a PC with locked down software.
Overall though there is no magic optimization that exists on consoles, or some exotic new version of the game that runs that much better on consoles. Instead you just get lower settings that sometimes might be too low to be even offered for PC users (unless they go through ini files, if available) - but that's just because the hardware is ultimately limited so they need to cut deeper so that it runs. We had seen that all throughout last-gen for cross-platform titles but it's clear that it's no different for what were supposed to be console-only titles like HZD, DS etc. And with so many more PS titles now being made with the PC in mind from the get-go, it's even less of a case for "console titles & optimisations".
So it's almost never the case that the PC version will be running worse than the console one, i.e. comparable hardware & same settings. Really the only case that I can think of recently was for RE-V on PC where the DRM caused issues for the game, but that got patched and wasn't really to do with the game running better on consoles as much as a muck-up on the devs side because they doubled the DRM and that created a mess. In fact I can think of more times where on consoles the games might have improper framepacing and you can't do anything about it, but on PC it's easily remedied. Nevermind all sorts of QOL fixes.
Console optimisations have died with the PS3. They're a myth.