Wireless VR is not fully ready or well developed and was not standard 6GHz wifi would be better. occolus rift was cheaper and VR gaming is still in it's infancy in terms of well developed experiences.So in time these 2 issues might be less of an issue and sales might go up easily.
The steam console box would have been fine and they would have hit the sales but they did not have enough compatible content to fill the steam community appetite that they were used to at the time.
The steam deck slots in nicely with where steam is at in making their library less microsoft dependent and no it does not beat the nintendo in some ways but it does in terms of the library offered which will expand quite quickly after a while with the efforts that community has been making into near the full steam library.
When you consider it's a custom AMD chip it's not a bad choice AMD has served sony and microsoft well in terms of price relative to offerings. Remember how much it cost especially sony when it went for the IBM Cell and Nvidia option and it was all easily surpassed by PC's with very little special about it, it wasn't a good economic time for either company.
Imagine if Sony and Microsoft approached AMD and ATI. ATI and AMD would have worked their engineering team to the bone to keep such a contract going sweet. The product would have cost less had better specialised graphics features, consumed less watts, been easier to manufacture, and would have performed better. The top dogs like IBM and NVIDIA seemingly for making console chips were not maybe the optimal choice.