I've been doing a bit more thinking over the price, and I'm starting to warm up to it. I think what initially soured me was in viewing the Steam Machine price in direct reference to consoles, despite the fact Steam Machine isn't just a console(ized device), but a PC as well. Then there's also the larger benefits that entails which you don't get on a console like PlayStation or Xbox: free online play, unlimited mod support, way more customization options, cheaper games (on average) etc.
When you start looking at it from those angles and the bigger picture, suddenly that $1049 starts to be more easily justified, at least in relation to traditional consoles. And it's not like Steam Machine is that much weaker than base PS5, it's like 10% less on average tho it's really stupid that Valve decided to stick single-channel memory in some units (at least that suggests maybe you actually can upgrade system memory, tho, which is nice).
But then the other problem becomes, does Steam Machine offer better value than similarly priced PCs? That's where things are a lot harder for Steam Machine, tho I guess the benefit there is that Steam Machine has everything set up out of the box. If I go for one of the alternative it probably has Windows pre-installed so I have to wipe that and replace it with another OS. Then I gotta configure everything properly which could take hours or even days given my schedule, especially if something screws up along the way. A Steam Machine saves a lot of time in that regard so the convenience may be worth the cost vs. a similar PC device offering slightly better specs (and better upgradability options) at a lower price but lacking any OS & UI optimized setup to be plug-and-play simple.
Look at it this way: I could get a Steam Machine for $1049, never have to pay for online play and get tons of mod support plus full customization for apps, programs, themes etc. given it's basically a Linux box....or I could buy a PS5 DE for $649, have to pay $80/year for online access (all non-F2P games), have way less games to access generationally-speaking, way more limited mod support, no expanded PC-like functionality, and some of the worst customer service in the industry in case something goes wrong with my account. I'm speaking of all this hypothetically (already technically have a PS5, just let my nephew use it a lot since I'm usually too busy), but we know SIE'll probably have a PS6 equivalent and at that point I have to ask this type of question, as will many others.
And the same problem faces Microsoft, BTW. Especially if they're retooling Helix to be more like a traditional console.
