This is true and might be an argument that windows 11 is actually is moving away from its archaic foundations, slowly. But hardware isnt always a limitation. Companies will refresh laptops and workstations with better hardware yet still require use of legacy software. Its a tug of war between a companies financial spending, want for the latest tech in other areas of the company, tolerance to security vulnerabilities, etc. If microsoft tells them that they cannot use their essential legacy software on windows 11, and drop support for their older versions because of their own financial review, then they risk losing their largest customers.
I do think the legacy bloat is more to do with its foundations in software, being based on windows NT, moreso than legacy hardware. And with hardware improving, software gets faster for free just by running with more overhead. Its led to an inefficiency boom which you can see with games becoming less optimized because they dont need to be. Same could be applied to window's with respect to new hardware.
Depends on storage conditions and age but I just digitized my family VHS tapes from 96 to 08 and they were all still in great shape having been stored inside and left alone. Older tapes might be having trouble around now