I dont think it needs to win or lose tbh. Valve will sit back, 3rd party will make machines (like now) and Steam will sell games.
Steamdeck hasn't beat Switch, but its opened a whole new market to portable/PC Hybrid and the tech is only gonna get cheaper and better.
And its been making them money for software sales. People have a solid ecosystem with Valve. PC and Portable. Neither needs a Valve made PC or Portable. Just Steam OS or Steam store.
Valve doesnt need to invest in it so much or worry about needing to sell consoles. They have the PC market on lockdown basically, they just need to slowly spread. 3rd party like Dell, Asus will create them for Windows, Steam etc
Games/New gamers will get to choose PS6, Switch 2 and a 3rd option. A bunch of 3rd party consoles made by the likes of Asus, Dell, Lenova etc, that play Windows/Xbox games, Steam games, Epic store, Gog and some Playstation games all in one device. Cheaper games, free online.
Its not meant to beat Playstation or Nintendo in console sales, but it doesn't need to either. It will just slowly spread