I think you need to check out what prebuilt PC prices are now. This is pretty much the same price as a DIY.
Just to pick on someone, iBuyPower's cheapest "RDY" prebuilt gaming PC has 6 performance cores, 16GB RAM, 8GB VRAM RTX 5050, 1TB NVME, and costs $1200. Basically same specs as the Steam Machine, for a very similar price, but in a typical midtower instead of a sleek, compact cube
> basically same specs
The RTX 5050 8 GB is 10-20% faster and the Intel 225F is significantly more powerful (a bit harder to get percentage ranges there since there aren't many 225 benchmarks).
The Steam Machine has been known to be roughly a Ryzen 5 3600 + RX 7600 M performance wise for a while and the release benchmarks have confirmed it; given Valve's statements that it would likely cost more than consoles before prices went haywire, I don't think the Steam Machine would ever have been priced competitively.