So is the new Xbox really better than ps5?
The hardware is better.
The specs are better.
The UI is better.
The system level features are better.
The backwards compatibility is better.
As an owner of both I would still say this though. Unless Game Pass and or Microsoft exclusives have a strong appeal to you or you only really care about mostly multiplatform games I would go PlayStation.
PlayStation has it beat on software. In part because of Sony's output and in part because there are a lot of Japanese and other developers that don't even bother putting their games on Xbox because the audience isn't there. PlayStation will have it's Sony exclusives but it will also have other exclusives simple because of that fact.
I will also say if you're a huge fan of Western RPGs outside of CDPR and Bioware Microsoft owns studios like Obsidian, InXile, and Bethesda so they're gonna have a borderline monopoly on such titles going forward.
I've never really been an Xbox guy. I'm a PlayStation gamer but I feel like Microsoft has assembled a very compelling case for owning an Xbox which is why I own one. I'm not like the other PlayStation fans you'll encounter on this site. My ties to PlayStation are because most of my favorite kinds of games I play simply don't exist on Xbox. I have no irrational hate boner for Microsoft. If another company makes a great product I'll buy it as I did with the Xbox Series X.
Right now PlayStation 5 is the inferior system with the better software library. That might not always be the case though. Microsoft Game Studios this year has put up a strong case that may change.