Valve should release a "Steam Deck Max" next year
Considering the current state of things, i think that Valve should release a Steam Deck Max next year with the Z2 extreme chip or their own custom version so it can run all current gen games reasonably well and perhaps some early next-gen titles too.
People have been asking for a Steam Deck 2 but i think its not yet time. The steam deck works best as a backward-looking device where it can strongly play games that came out before it, while maintaining reasonable performance on more newer titles (even if at the lower end).
So i believe the best release cadence for steam decks is to release an updated steam deck device at the end of the current console generation and then release a new major version (Say steam deck 2) at the middle of the next console generation. that way, the steam deck can keep up with performance at all times.
That forward-looking Performance-pushing aspect should be reserved for the Steam Machine. Perhaps, it can release alongside the next major steam deck, with enough power to surpass the current consoles of the time so that it can last well into the middle of the next console generation.
It may be more expensive at the start but it'll be the right investment and eventually get cheaper since its release cycle will be longer than the mobile steam decks. This will give people more time to upgrade parts while also increasing the number of steam store customers with people buying it used and refurbished down the line.
All this will be a reasonable win for both Valve and players. I respect what Valve is doing and hope the best for them.