Yup pretty much.I honestly don't see Steam Machines appealing to hardcore PC gamers. It's going to do well with PC-curious people (like me) or gamers that like PC gaming but would rather not deal with building their own PCs from scratch. There's an untapped market there (real question is how big), just because these machines don't fit you doesn't mean there aren't people interested in a product like this.
My friends hear me go on about Steam and sales all the time. As a result, they went and made a steam account, bought some games and can't really run them on their shitty laptops. I told them about the Steam machines, and every single one of them that hasn't bought a PC is interested. They're already invested into Steam, they've seen the greatness that is cheap games, and want to get in on it for real. This is for those people, not the guys who like the watercool their shit and put 3 different fucking GPUs. There's already a market for them, and they should stick to it instead of shitting on new approaches to the expand the PC gaming market.