Sure, modding the device will always have a niche interest, and people doing it just because they can, but if the price point of such a device is comparable to a Switch (easily hackable) or even a Steam Deck (outright open for you to do whatever with no barriers in place), would this device have any practical benefit for that kind of stuff over the alternatives?

I think it will continue to have some niche benefit, especially if modding the device still retains its presumably “first party, easy” path to streaming games from a local PlayStation, and for people who would want to keep the presumably better-quality and 1080p display over what’s found in the Switch and Steam Deck, but I think someone looking to get something to primarily use with Steam Link or other such services have better (incl. first-party) options for that use case.