There's also nothing in this that really needs Intel to do it, an OEM could easily push a SteamBox. I'm not an OEM, but there's no real hard work here afaik. Make good choices in hardware, test and confirm, put in good antennas so that wireless controllers (that are already in the marketplace) are rock solid. Do some support work, etc.
All current console CPUs are custom silicon, eliminating bits they don't need an adding what they do need.
Likely taking Panther Lake as-is would be too expensive.
I recently bought an MSI Claw A1M handheld gaming PC, because it was cheap. And the performance of the Core Ultra 5-135H is fine, and I think it can handle E33 at 1080p30 with upscaling, and anything else I'd want to play much better than that. But the battery life and power consumption isn't competitive with even the original Steam Deck, and we haven't seen an indication that Intel has anything to leapfrog AMD chips any time soon.