You seem to be unaware that SteamOS was a a resounding success in its primary goal: to stop in its tracks Microsoft's plan to turn the Windows OS into a locked-down walled garden that would run only MS-approved software* (by threatening them to switch the majority of gamers to Linux). Microsoft has never attempted such thing again to the same extent, and even XBox games are largely PC compatible.

That Valve has learned a lot about porting Windows games to Linux and they went through all the early labor pains, so that a few years later they have a robust and stable platform for their new competitive device, is just icing on the cake.

* For a hint of this backstory, see https://www.pcworld.com/article/394953/why-does-the-steam-de...

> it's just not going to be as smooth as a console with a dedicated OS. I'm guessing lots of people will install windows.

This is a console with a dedicated OS (which just happens to be Windows retro-compatible, thanks to Valve's Proton layer). Given the success it looks set to have, publishers won't be able to afford not to optimize their future AAA games for the device.