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It is just impossible to get anything near this specs at this size with this price. And it hasn’t been like this for a long time. Speaking as an owner of HX99g.
There are minis that are more powerful than Steam Machine, but they would start at $1200-$1500 and go as high as $2500. These machines wont run everything 4k@60 but due to how Valve manages their hardware, Steam Machine very likely will for a while.
As an example, there are better gaming handhelds on the market judging by specs. They do be running games at better settings and fps. But Steam Deck is still is at the top of the list for its price and is still a benchmark in how it should be done.
It was always a bit more expensive to insist on arbitrary counter-intuitive requirements like an arbitrarily tiny non-standard form factor.
There really is no actual benefit of that thing being that tiny. Obviously, there is space for a massive TV. That TV isn’t sitting on the floor. Logically there is a lot of space below that TV. Just put a desktop PC there.
And people actually had office-desktop-PC-sized VCRs in their media racks below their CRT TVs for a long time. There was space for that. And the classic HIFI towers which dominated living rooms two to three decades ago are massive compared to a desktop PC.
Handhelds are obviously a very different thing. It makes sense for them to be Steam-Deck-sized. The form factor actually makes sense for a mobile gaming device. It’s just the stationary mini PCs where the form factor is just the pain without any actual gain.