They are still more powerful, but actually demonstrating that is not so obvious to the general consumer aside from the numbers being touted.
This.
I have never stopped telling anyone who cared to listen, that it is the responsibility of 1st party games to squeeze every bit of power out of the console. That third party games are just too lazy and would only do a good enough job to have a marketable product for all the different consoles.
Xbox fans, however, always claimed that it doesn't matter if there are no first party games, because third party games make more money. This, of course, ignores the fact that the goal of first party games is to be a marketing tool for the console.
Now Series X basically has no 1st party Series X games that can really show what the console could do, for the next two years. And they are somehow counting on third party games to make games that look good enough to make Series X stand out.
That.. Is a long shot. We know from history that Third Party games really, really don't push the envelope. That unless one of the two consoles have a design flaw (like with PS3 architecture), there is not going to be major differences between PS5 and Series X third party games.
Xbox Division basically kneecapped Series X on their own. It wouldn't be as bad as that happened to Atari Jaguar, but the story is the same;
if you can't show your power, the power might as well not be there.