Best answer: Yes. Since it supports 4K and HDR video streaming, the Xbox One All-Digital is a great device for streaming. However, the lack of a disc drive does mean that you'll be limited as far as how much 4K/HDR content you can enjoy.
Why is the Xbox One All-Digital good for video streaming?
The reason why the Xbox One All-Digital is good for video streaming is because it has the ability to play movies and TV shows in 4K resolution and with high dynamic range (HDR), provided that the media you're watching has support for it and you have a TV that works with these features. This is especially true if you're a subscriber to services like Netflix or Amazon Prime Video, since they offer tons of 4K/HDR content.
Speaking of services, there are plenty of video streaming ones exclusive to the Xbox One family, though they mostly offer regular HD content. Notable ones include Microsoft Movies and TV, MTV, USA NOW, Syfy Now, FOX NOW, Comedy Central, and, if you enjoy watching video game streams, Mixer.
Why might a regular Xbox One S be better?
While the Xbox One All-Digital is certainly awesome for video streaming, you may want to choose a normal Xbox One S instead because the disc drive broadens your options when it comes to 4K/HDR content. While media with these features is fairly rare digitally, 4K/HDR Blu-ray discs are extremely common to find and are sold pretty much everywhere, from mom-and-pop film stores to country-wide chains like Walmart.
Ditch the discs
Who needs physical, anyway?
If you don't like physical discs and don't mind having a limited range of 4K/HDR media, the Xbox One S All-Digital is a great device for video streaming. It also comes bundled with three game codes, which is a nice bonus.
Stick with the classic
More options overall
If you want to be able to use 4K/HDR Blu-ray discs while also being able to stream video, the original Xbox One S console should be the device you opt for.
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