The key, as mentioned, is software. There’s a limit to how complex a program like Word or Paint can be, since any new features would appeal to maybe 0.5% of the users (although with something like Excel it seems they can add more and more complex features).
Even with 4K monitors, there’s a limit to how complex a video playback program can be.
My wife still uses a 14-year-old Mac Mini running VMware Fusion, that I had set up many years ago with Windows 10. The version of Office is just as old. Ditto for the Macbook from as far back - we recently bought a new laptop with more capabilities.
What will happen is as newer versions of software are released, they will not install on atiquated hardware or operating systems. My original iPad is almost useless, there are no new programs I can download for it. My newer ones, including one that’s 5 or more years old, still run fine. My iPhone 3 is likely useless, I haven’t tried using it as a phone for more than a decade.
What were are seeing is incremental improvements, particularly in the processor capabilities, that newer operating systems and programs take advantage of; hence the warning for some older computers, that they are incapable of running Windows 11. Usually these improvementts relate to new modes or microcode that enhance things like security, program isolation, and virtualization. There’s also things like new interfaces, disk formats, etc. Or plugs - most new monitors tend to come with HDMI and Displayport. (I haven’t looked to see how often they have VGA socket, for example)
One of the more insidious things that will happen is when turning off program key verification happens - you may not be able to install your favourite program on a new computer because the server that verifies the product key no longer is running - either the company goes out of business, or is bought and the program is no longer supported, or the company simply decides “time for you to upgrade(for a fee)”
(I recently powered up my Windows XP machine, but I won’t use it on the internet.)