We've already seen Intel and AMD narrow the gap considerably, in part by adopting designs pioneered by ARM manufacturers like hybrid big-little cores.
Another aspect that I think gets forgotton in the Steam Deck conversation is the fact that AMD graphics performance is well ahead of Qualcomm, and that is extremely important for a gaming device. I'm willing to bet that the next Steam Deck goes with another custom AMD chip, but the generation after that is more of a question mark.
RISC-V is another wildcard that could end up threatening ARM's path to total dominance.