Steam HAS to work. It's high time they unify Windows gaming and Xbox into it's own hybrid OS of sorts. Too much wishful thinking, but it will be insane. Like, have a gaming mode within windows which kind of shuts down unnecessary operating system functions, but offers services and kernel access to the software that is permitted to use it (like Steam, Gamepass, EGS etc).
May be incredibly hard if such an OS level compartmentalization doesn't exist, but it will allow them to offer cross compatibility with full blown Windows and also leverage the OEM ecosystem for new devices (and launch their own variant of the device).