I am more surprised there's people lining up to buy this when it's genuinely cheaper to get a used PC off a local marketplace. I feel like this is unnecessary as I am pretty sure they'll be able to fill it in one shipment.
I get to support people that are very involved in making sure that a long list of x86 win32 software that I want to be able to run plays well with linux and osx (not-quite-directly, but the crossover folks are on it) - regardless of whether it's on steam or not. Plus general linux desktop work in the "make games play well" department.
Meanwhile, MS is trying to push copilot again.
For €1039 you can even get a mini-ITX PC that fits nicely in your living room. Install SteamOS to get a similar experience. Only thing you will not get is the HDMI CEC functionality.
People value convenience differently.
A huge number of people would rather pay a few hundred bucks more to have a plug and play appliance with a warranty from a reputable company show up on their doorstep. They don’t have to learn anything about hardware, or how to install Linux. It just works.
Some people are happy to save the money and take the risk on used hardware.
The Steam Machine is for the former, Steam the platform is for the former and the latter.