Although I would love to see it, as long as DirectX is the de facto graphics API, I don’t see Microsoft fading into irrelevance when it comes to the PC gaming market.
Hopefully Microsoft releases a handheld mode instead of just experimenting with it. Besides the interface, they also really need to optimize for performance. Even though, with the steam deck, proton is converting draw calls it still outperforms the same deck running windows with native driver support. This really shows how the mountains of extra crap running on windows hurts gaming performance on these low power devices.