I had a Steam Deck for a few months, and it's a very straightforward experience for those who just want to plug and play, but it's a bit tricky to do some things because the system is based on Linux, not to mention some important games that aren't compatible. Microsoft has the advantage in this regard, they own Windows and an Xbox OS would be based on it... They could make launchers install with just one click, games with anti-cheat wouldn't have compatibility issues, etc.
Depending on how it goes, I won't have a problem having this Xbox/PC hybrid as my secondary console alongside a Nintendo console, since pretty much all games are coming out for PC anyway... I just haven't migrated to PC because I want a device with a straightforward experience.