Not a reason to not buy a bass, as it's easily replaced by a push/pull pot. $5 max plus labour.
So you think it's ok that Fender use a part with a well documented, known issue of mechanical failure in their $2000+ basses?
Sorry, but that's just not acceptable in my world. In fact, I wouldn't find it acceptable on a $200 Harley Benton. When a part has developed a well documented history of failing prematurely, you stop using it. When they know about it and keep using it, it's basically planned obsolesence.
Also, replacing the S-1 switch with a push/pull pot might have been a quick&easy job if Fender had wired these basses the classic way instead of going cheap and using surface mount components and pots/switches directly soldered to a PCB. Just to be clear: I'm not saying SMT/PCB will affect the tone negatively in any way whatsoever, but when something fails it can be a lot more complicated to deal with, and Fender is obviously doing this because it's cheaper than wiring it the classic way.
Even if you're willing to deal with all the hassle, I'm not convinced that there's even enough vertical wiggle room to install a standard push/pull pot without bending and potentially breaking the PCB when re-fastening it to the pickguard. So no, the S-1 is definitely not EASILY replaced with a push/pull on these basses, if actually possible at all (within a reasonable amount of labor).
Of course the S-1 pot/switch can in theory be easily replaced with the same type of S-1 pot/switch when it fails. At least if you can find one that's made for PCB mounting. The S-1 switches/pots I've seen Fender selling separately have NOT been for PCB mounting though. If this part isn't readily available it means that after the warranty runs, out a broken S-1 switch might actually mean you're left with a broken preamp assembly that's no longer supported by Fender.
And in any case, a replacement S-1 won't be any better than the one it replaces, which means it will be a forever ticking bomb.
This is of course assuming Fender hasn't COMPLETELY redesigned and improved these S-1 switches/pots, but I haven't seen anything to suggest this.
By all means, buy this bass if you want to. They're generally very nice basses, but the well-documented issue with Fender's S-1 switches/pots should be mentioned when someone asks for advice on these basses. When soldered directly to a PCB it can potentially be an even bigger hassle to deal with.