This I would agree with, but what makes it pro-consumer? At best it's neutral assuming you want to fully utilize Game Pass, selling a service for a price a consumer is willing to pay is neither pro nor anti-consumer...it's just capitalizm. Wheter you do it over 24 months or in an instant doesn't really matter. On the other hand providing the consumer the choice of saying no thank you to Games Pass and offering Xbox All access would be slightly more pro-consumer, but as you've stated earlier that wouldn't be profitable to them so it's understandable that they don't.
I wasn't aware that there was no late fees as in my head any purchase on credit plan will have late fees otherwise the risk wouldn't be worth it from the vendors side. So I did some research, and found out that you are right, there are no late fees. I find this incredibly strange, might be different in my country, but usually if you can't pay off some credit there are a number of way that the company has to "get back what's theirs" they'll start with fees, and then if this doesn't work they sell your debt to a dept collector who will then charge you enormous fees, easily doubling or trippling the initial ammount owed, if this company still can't collect the dept you owe, they might involve local authorites to freeze your account and automaticallty withdraw money from your account as it comes in (denying you access to it to pay off rent, other loans ect), they might take even take you to court.
Again I couldn't find any details on if Citizen One guarentees this won't happen, all it says on their website is that late payments are reported to credit agencies, but other than that, are we to assume that you can essentially buy an Xbox Series X on credit, never pay, and they'll just ignore that and let you keep it?