Sure the PC Master Race types won’t want this, but I think that’s a very small group of people.
The number of people that want a low powered, non-upgradeable, outdated by about 10 years gaming PC that will struggle to play anything other than 2D indies at 4K60, and also can't play any of the big AAA games like GTA6, COD, Apex, Battlefield, etc at all is infinitely smaller than the PC Master Race types lol.
It really isn't. This thing needed to be cheap if it was going to gain any traction. It needed to undercut everything comparable on the market, significantly. Valve needed to aggressively subsidize it since they make money hand over fist from every game that it can play. Instead it's going to be even worse than the last time they released steam machines, only this time it will be much more damaging to them since they're making it themselves.