i agree. Valve's money machine is with the steam platform, rather than any hardware sales - breaking even on hardware is sufficient imho.
Valve's existential threat is from microsoft closing off windows somehow (or extracting rent...like a store!). Therefore, pushing steam machines which can be run without windows, is both business expansion as well as an insurance policy.
Being pragmatic, I wonder if Valve benefit from the health of the PC market, whether they'll also put efforts into helping people get more life out of their existing machines, or individuals/businesses refurbishing to sell on the used market with more confidence. There's already an angle for reducing e-waste with the win10 end of life if it can be tied into installing linux.
Wasn't that true with the previous incarnation of the steam machine, the valve index, steam controller, etc.? IIRC their VR gear was some of the most expensive consumer level gear on the market.
The steam deck, and now the (newer) steam machine is looking to push into the mass market of consoles, and i reckon it would be more successful. Not to mention the more mature steamOS and compatibility layer now (compared to before).
I have high hopes for it. I want PC gaming to break free of microsoft windows.