28's will fit, work, and perform fine. The apples-to-apples comparison would be to use the same tire brand and model in both sizes. A 28mm Conti 5000 should spin up and roll slightly faster, but also ride slightly rougher than a 32mm Conti 5000. The differences probably would not be large, but they should be more than nothing. Subtle, but there. That said, I went from 25mm Schwalbe Pro Ones on my V20, to 30mm Schwalbe Pro Ones on my V20c. The V20c, even with the wider tires, is slightly faster, and definitely smoother. That isn't pure apples-to-apples because the two bikes and wheelsets are different (deeper section wheels and feet up a little higher on the V20c), but the smoother ride of the wider, slightly heavier 30's is, for me, worth any pure performance tradeoffs over the 25's, if there even are any.
You'll notice larger differences once you start changing brands and intended uses. Someone looking to move to a narrower tire is probably wanting to maximize performance, even if it means losing a little bit of comfort. You didn't mention what you are currently running, but CB lists the Maxxis Re-Fuse 32mm as the current tire spec. Reviews and Maxxis itself seem to peg that tire as a "good all-rounder" for mostly pavement, which makes good sense for the stock S40--CB's all-rounder model. It's a good, robust enough, comfortable enough, light enough tire to start with. Move from that to a more performance, even race oriented tire, in a 32mm (same size, with most current performance/race tires topping out at 30-32mm), and you'll probably notice a performance gain. Bring that down to a 28mm, and that gain should go up that little bit more (while ride smoothness perhaps dips a little).
The largest tradeoff to moving to a narrower, racier tire will most likely be shorter lifespan/less durability, and a higher likelihood of flats. Some people like the feel and zippiness of faster tires enough to accept this, including the added expense of changing worn out tires more regularly. Others put a premium on higher-mileage durability and greater puncture protection, and don't mind the minor performance dip. Local road quality might also be a factor in how one chooses.
The beauty of the S40 is how you can dress it up to suit your desires. Put 650b wheels and 38mm tires on it, load it with racks and panniers, and go for a big tour. Or put on 28mm performance tires (and maybe someday upgrade the stock wheels), and you're ready to hold your own all day long in a spirited club ride, or finish a century with a new course PR.