It's really a lot of reasons why, most of them have been covered already in this thread, but to summarize
1. More storage
2. More power
3. Disc drive
4. Future proofing (eventually all TVs of a certain size will be 4K)
Honestly, I would be lying if I said I wasn't interested in having the Series S as a novelty. It looks cute and would be a great thing to just bring along somewhere. Just hook it up to a hotel TV, turn on your phone's WifFi hotspot to log in and you're good to go. I already have a Series X for our entertainment room, but a Series S would be great in my home office/gym where I spend most of my time every day. Now that you can play X-Cloud games on a PC, though, I may not need the extra box.

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