Value are probably betting on the fact that anyone who wants more demanding PC hardware on their TV is part of the audience who know how to turn any PC into a Steam Machine. Genuinely no point making a high-spec Steam Machine.

The Steam Deck gave birth to an entire handheld market that helped define the features of the Switch 2. I imagine the same will happen with this. Much more powerful third party Linux-based PCs for the TV by folks like ASUS and Lenovo, plus Ayaneo et al

Pre-built system market has massive opportunity in the living room but no precedent to follow (no entry point). If Valve can once again normalise and thus create that entry point there is potential for big growth in that new market, and thus potential to move fast and shake up.

Possible that living room will not be dominated by a handful of branded machines rather that the war for the livingroom will be storefronts, with many many manufacturers putting out the hardware. In that sense Valve & Xbox have the upper hand. (Support for 3rd party hardware). Xbox strategy make sense now?