The thing is, I don’t think valve wants to become a desktop OS provider. Becoming the provider and maintainer of an OS for hundreds of millions of users is so far beyond their scope as a company. They’ve got a third the employees of Canonical and a fiftieth the employees of RedHat, the companies behind Ubuntu and Fedora. Maintaining a limited scope console/handheld OS that runs on a handful of hardware set ups is one thing, but supporting a fully fledged daily driver desktop OS meant to operate on any system is something else entirely.

Right now, most of their users are on windows, which makes them nervous because Microsoft is a known monopolist and has been slowly creeping deeper in to the PC games space. That’s why Valve has put so much effort in to software to support compatibility on Linux, so there is a viable alternative if Microsoft try’s to push them out. I think the steam deck and steamOS were a means to that end, create a business reason to develop and support those tools, not a first step towards becoming an operating system developer.

A better route forward for them would be to use their reach and public trust to help people make the switch to other extant distros. For example an all in one utility on the steam store that helps people select the right distro for their use case and set it up, have a hardware scan and a little quiz to choose a distro, a hard drive partitioning tool to set up dual boot, a tool to write the ISO to a USB drive (or maybe even just set up a bootable on the disk using the partitioner IDK), and migrate important files over using their cloud system.

If the issue is that people trust stuff with the valve branding on it, but are not willing to try Linux on their own, then Steam acting as a guide is much more practical than Valve taking on all the work needed to maintain a proper distro.