I'm not sure what type of sympathy people want to court with the "woe is me" narrative around how they need a third gaming device. The selling point of the Steam Machine is the software. Nothing about the bespoke hardware is worth crying over, it feels like object fetishism for the sake of it.
I'm not aware of a single other product on the market that offers what Valve's device does. Tons of companies offer gaming PCs and you can slap Bazzite on lots of them, but that won't get you everything the Steam Machine offers. It's, AFAIK, unique.
[0] "But I've been running a PC attached to a TV literally for decades..." yeah, you've probably been missing some HDMI features that you don't care about but others do, or had trouble with them, while any gaming console or media player will have those features and have few or no problems with them; do you have surround sound over HDMI to a proper audio receiver, with non-broken mode-switching depending on current output? Use CEC features to wake your PC from sleep? What's your color gamut like? I've done this before too, a lot, hell I did it all the way back when I needed a composite or S-Video out on my video card to make it happen, on a CRT TV before HDMI ports were really a thing. Really good support for the use case looks a lot different than what you usually get by just plugging a PC or laptop into a TV.
What games do you play now that this specialized piece of hardware would better?
It'd likely be better as a living room TV PC than any PC I've ever owned or have seen for sale before, and it's likely to enjoy years of good support and frequent updates for its entire software stack by the same vendor that's selling the hardware, which is something I've never seen from anyone but Apple (aside from Valve, of course, for my Steam Deck) in more than 25 years of buying PCs and PC hardware. I tend to use my gaming PCs for five or so years at a time, despite never buying any parts that are top-of-the-line, so I'd expect to use this at least five years, and if the steam deck is any indication, it'll likely have 1st-party support for exactly the device and software I am using that entire time.
It'd be better for approximately all the games I play now than the power-hungry giant tower I have (it's effectively a lateral move on everything except 3D processing speed, which'll be roughly double what I've got now), plus, unlike this bazzite-running franken-PC, I expect it won't do stuff like have a weird whole-screen momentary color-shift every couple minutes (multiple monitors, it's the software, not the monitor's fault), constantly forget how to connect to bluetooth devices it's paired with (this, with a USB-attached bluetooth chip that's allegedly "really good on Linux", LOL; incidentally, it also can't pair with some devices in "desktop mode" [KDE] but can connect to them there once paired in "Gaming Mode", it's so weird), freak the hell out and scream like the damned(!) if a game tries to output something other than stereo audio, et c. I expect it'll have fewer "minor" problems like that on account of the 1st party vendor support and their having very few total hardware configs to test against.
I want it to play video games. Who in god's name would brag about something they merely bought? Especially if that something is mass-produced electronics.
Snark aside, the second hand market is off the rails, too... The Steam Machine is cheaper than any DIY gaming PC I can build right now, even from parts off of OLX... And unlike the one I'd make, the Steam Machine will get the Steam Deck treatment as far as optimisation and certification (as in Runs on the Deck) goes.
I did what you said last year and it’s been a delight.
I absolutely agree on your notion of "what is with this 'I need the shiny new thing for sake of having a shiny new thing.' "