Now, they need to make a revision of the S with more VRAM, bump it up 12GB minimum, additional RAM for OS and background tasks too. At that point, it would be more similar to to just "Lowering the resolution" like MS claimed it would be when it came worries about a weaker system. But, you're then adding a third system to the mix that devs have to target, MS really screwed the pooch on this one, which is the reason why we're hearing Phil talk about how we basically don't need a mid gen refresh, etc.
Not that the S will be abandoned, but I imagine we'll see it continue to miss out on features and maybe some games as we cross the mid point of the console generation.