You'll likely see a lot more Steam Machine-like PCs because of this. SteamOS fixes most of the problems you mention. Price is the new normal and you should expect next gen consoles to come closer to it. It's not a bad deal anyway when you consider the bigger library, cheaper games, and no subscription required.
replyAt that point I’d say we’re talking about a PC/console hybrid anyway so the distinction gets a little less useful.
replyBut why? The Steam Deck and Machine are pick up and go like consoles by default. Only a small minority care that it's actually a PC you can use for things other than games.
replyThe only thing that sets them apart is Steam's hardware isn't locked down.