Dedicated hardware still has benefits, having your phone notifications separate from gaming, if your phone breaks having your console break would suck, and imo a touchscreen will never surpass physical buttons on controllers so you’d still want those.
I personally hope the future looks more like a steam deck than a gaming phone.
When a contract ending almost caused Sony to remove all Discovery content from users last year, including digital copies of things people had paid full price for, the cracks between buying a digital license and actually owning something that can’t be taken away became more visible to a chunk of people. It’s something, but it’s not ownership, and it can be taken away based on agreements you may have no way of gaining insight into.