I would agree that for more power and demanding games you would want one with an external GPU, maybe even more powerful CPU. Though as a SteamDeck user and also looking at it from the perspective of a console gamer in terms of power and price range, something like this would probably fit the bill very well, especially for a cheap living room setup.
There definitely are more powerful options out there for living room setups though, but they also cost more money, which is the main reason they go for consoles, they are (like midrange APU computers) more cost effective.