Okay, I don't want you to get defensive here, but I don't think you've thought this through. The X1 would have to be selling a lot worse to justify cutting the cord on it after four years.
Even if it could, this brings a number of new problems to the floor. First, you talk about hardware, but hardware doesn't actually sell consoles. What sells consoles is features and games, with the later being the primary driver. A big part of the reason that Microsoft lost so much momentum so quickly, is that for all thier success with the 360, they failed to produce many brand names that'd bring people back to thier platform.
Bringing out new hardware doesn't fix this. Microsoft needs games and brands that people care about, and creating those games is going to take time. Microsoft could try to cut and run early, but without loyalty to Microsoft game brands and studios, the exact same thing would happen again the moment a new machine came out that could play third party hardware better.