They don’t have the means to produce at scale, which has resulted in wild price fluctuations on their end. (even though to steamdeck OLED did sell out at the much higher price.) To me at most they will continue with the controller, but that’s about it.
Why? The price went up because the cost of components went up. No one else is selling comparable hardware for less.
You can currently get a Lenovo Legion Go S Z2G 512GB for 570€. Slightly more powerful, with a higher resolution VRR screen and official SteamOS support for 200€ less . No touchpads or OLED, but still. It looks like Valve has a disadvantage in sourcing components compared to larger hardware manufacturers.
Still don’t think they’d give up their hardware though.