A console is typically locked down; they can sell them at cost or a loss and make up the money selling games. A computer is typically not locked down, you can install games from wherever on it, so they can't assume you'll buy your games from them (even though you will)

As someone who has hooked up computers to TVs all his life, I can tell you. Just turning on with a controller directly into game mode is a massive game changer as it is a pain to get it working today. Look for guides about it and see the batshit hacks people have come up with.

That and the overabundance of Bluetooth antennas. Oh, and it also comes with super fast WiFi 7 special connection for the frame inside the box. Also, heat and sound management. Gaming PCs are little space heaters, very efficient during cold weather and a pain in the ass in hot climates. Keeping them cool takes an assortment of turbines and makes the living room sound like an airport. If this thing is as power efficient, quiet and cool as advertised, it will be the gaming enthusiast's dream.

My theory and point was that by thinking about that computer as a console, in the average consumer mindset it should be priced like a console. From a pure hardware product perspective there is no difference

Valve is thinking about it as a computer, and has stated they intend to price it like one and not like a traditional console

When you turn it on it boots to a controller friendly UI that shows you all your steam games. No setup, no hunting for drivers, no bloat.

I think both of you are right but also wrong. It's called "whatever you want" and there is no universal name for the practice. If you're not using your PC for media, it certainly isn't an HTPC.