Probably yes, but not in the way you're thinking. Hardware portability, versatile enough for non-computery people to use, and the value that can be had from borrowing and swapping physical media are all things the Steam Deck is not very good at in comparison to the Switch 1. They're both fine little gadgets, but they have quite different strengths.
Will it compete with steam deck on hardware, versatility or value?
Versatility? lol, of course not, all it can do is play games licensed by Nintendo. Probably not on the other points either.
Probably yes, but not in the way you're thinking. Hardware portability, versatile enough for non-computery people to use, and the value that can be had from borrowing and swapping physical media are all things the Steam Deck is not very good at in comparison to the Switch 1. They're both fine little gadgets, but they have quite different strengths.