So what are you saying? They can do this single limited release and then discontinue it and everyone is going to be happy about it? People will just flock to the next version when it comes out and not feel burned by what happened?
Not many people run games on linux, only about 5%, amd of those nearly all keep a windows OS around to handle edge cases and upgrading firmware, etc.
This is what the fight is about. If Steam can't get linux based devices into the hands of enough people continuing to support it will remain a money pit for them for as long as they try.
Releasing the Steam box at this price is not helping their cause. They have to recover from this now.