Honestly, it's kind of on the developer. If they'd taken the Series S as the base line during development, they would have made life a lot easier for themselves. I think Microsoft are right to stick to their guns. It will seriously piss off their consumers if they can't land good quality versions of equivalent games on PS5.
I actually think it could be more beneficial for players across both console platforms to encourage developers to build games which scale reasonably, and at the low end target a 30 FPS minimum frame rate whilst the Series S/PS5 get 60 FPS+ or improved image quality, or both. Instead of it just being a race to the bottom on performance just so we can have a little bit of ray tracing.
Also, as far as I'm aware, Baldurs Gate 3 hasn't released on PS5 and is not due until September. I will be very interested to see how that goes, because I think the conclusion of this article is premature until we see that.