Microsoft really took Apple's old pricing strategy to heart for that thing - its got 4GB of ram in the base $1k model, has no remotely decent collection of ports, and comes complete with a limited OS.
The only nice think you can say about windows S is that its less awful than windows RT because there are actually apps on the windows store now. Regardless its still awful, and youd thought theyd have learned.
The OS is only limited to the extent that you want it to be. Windows 10 S is capable to running x86 apps (as long as you go through the store) and is nothing like Windows RT. Furthermore you can easily (and for free until the end of this year) click a button and have windows 10 pro, so I don´t see what you are complaining about, specially since its also cheaper than any mac with equivalent specs.