The problem is if you want upfront payment on the hardware or not. That is generally how the market split historically. PC gamers pay upfront high hardware cost for flexibility and console games paid low hardware prices but paid premium on games. The steam machine is trying to being the PC model to consoles. The problem is assuming everyone wants the hardware costs upfront model. Your reply suggests you think there is an ideal or optimal solution for every gamer. Markets find equilibrium based on demand unless some crazy actor forces someone's hand and we end up with restricted solutions.