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The thing about Valve's record with hardware is that the products aren't bad , just extremely niche. If this thing really can play most of most people's Steam games in a Switch-like form factor with a standard gamepad layout, I think it stands to be a hit in a way their past hardware attempts weren't. It's also an interesting counterpoint to all the streaming services popping up these days. PC game streaming to mobil…
I'd argue the Steam controller was kinda bad. But more in concept than execution. The touch pads were just not a good replacement for a thumbstick or a D-pad But I agree with what you're saying. If this thing is actually good, it could have some real mainstream appeal.
The biggest single win for me is replacing the right stick for camera control, as the trackball emulation with haptics on the touchpad is so much faster and more responsive than a traditional thumbstick. There are some games that I'd still prefer the standard twin sticks or dpad (twin-stick shooters maybe, some platformers, or hyper-specific designed games like Brothers: A Tale of Two Sons), but overall I've much preferred the touchpad over thumbsticks for almost every first- or third-person game I've played.