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If its slightly smaller and has an OLED screen, then it’ll be great. Those are really the only things the current Steam Deck needs.
It probably could have an OLED screen if the screen was only 5-6". It’s easy to get left over OLED screens from phone production in that screen size.
Phone screens aren’t 16:9 anymore though, so they’d probably end up having to cut down a really big phone screen (like 9" or so) or just make it custom.