Wow, welcome to the Xbox world, I'm sure you'll enjoy it a lot. I have all the Xbox consoles from the classic OG to the Xbox series S.
I really like Xbox because of the Gamepass subscription that really gives it life to your console and many content options for creating gameplay etc...
I hope to see soon what you can do with that small but powerful console. Regarding gameplay recording, you can add an exclusive USB storage o a normal external hard drive for your recordings and it will give you the option more recording time in very good quality, You can also download the games there and just move them between the internal memory and your external storage to run them, that's faster than downloading them when you want to play them, because there are games that only run on internal storage but there are some that do run on an external hard drive, mostly those that are not exclusive to Series X/S.
I'm just as excited about your new acquisition, which by the way is at a very good price of less than $160, that's a great deal, congratulations.
See ya soon.
!PIZZA 🍕
Yes, I think that due to the quality/price of the Xbox series S, the only foot that limps is the storage problem and of course what you mention about the facilities that the PS5 provides for the creation of content such as microphone recording that's so dope.