I think it depends what the price is. If they can make the experience compelling enough while (heavily) undercutting the Steam Deck then they may be onto a winner.

... Though being in the console market people will make comparisons to the Switch, so that might be their target price point.

Yep their best bet would be working on creating their game pass app for Linux/steam deck. With how awesome the deck is I would sign for it. Wouldn’t even bad hard to implement but m$ going to m$