Valve releasing their Steam Deck Home Console Edition

will open the floodgates for the average consumer at least strongly considering PC gaming.
I wonder if things would get worse for gaming should that come to pass, in hindsight.
I don't believe either of these will be the case. "Fremont", just like the Steam Deck before it, is going to be sold exclusively (outside of Asia) on the Steam storefront and there will be no marketing or ad campaign as other devices aimed at a mainstream audience. It'll be a niche product aimed at a dedicated enthusiast audience. It'll make it easier to engage with PC gaming in the living room but it won't cause a dramatic growth, it'll just make that number of concurrent gamer on Steam to grow just a bit bigger and perhaps push the number of Linux users growth an entra 0.2%.
That's the crux of the matter, it is going to be a SteamOS device, and as much as Proton has made playing Windows games on Linux a reality, there is still a key component missing, the willingness of online multiplayer game developers to make anti-cheat compatible with it.
Not the Steam Deck, nor "Fremont" will ever appeal to an average consumer because the games average consumers play don't work under Proton: Fortnite, Call of Duty, Roblox, FIFA, NBA, GTA Online, Valorant, Rocket League, Apex Legends, Rust, etc, that's a long list of mainstream titles missing that would be a definitive deal breaker for the average consumer..
PC will remain the last bastion of what would be considered "enthusiast gaming" because it is an open platform and the concept of tinkering, modding and tweaking settings, files, bios, etc is always going to be a part of it.
As for "getting worse for gaming", we are already there thanks to the scummy practices of the mobile market spreading to the rest of the industry.