Falcon gaming computers start at $3K, I don't think Valve is after that level of consumer with this, it's more of a "Bring the console players into Steam" move imho.

The fall of the X-Box has made it crystal clear that players buy consoles for the games much more than for the platform, even if they claim otherwise.

The Steam Machine doesn't have a single exclusive, therefore it will not sell, no matter its price point.