It seems pretty clear to me that the main target of this is ARM Chromebooks, at least for now. As these are the only products currently shipping in any relevant numbers where this makes sense.
https://www.bloomberg.com/news/articles/2023-11-09/new-steam... (archived link w/o paywall: https://archive.md/VWvsW )
The Steam Deck was Valve finally getting sick of nobody doing what they wanted, and technology getting to where they could do something more interesting than just another desktop.