It's mostly an iteration on existing handhelds with extra Microsoft changes on top. It's exciting if you don't want to leave the comfort of Windows. Unfortunately, it's just as much of a nightmare for privacy and other ethical reasons as other Windows handhelds. It also seems like it's going to be power hungry and not aimed at directly competing with the Steam Deck, which is still the industry standard right now. Handhelds need more efficiency, not more performance.
Also it's Z2 Extreme, not Zen 2 Extreme. The Steam Deck's APU is based on Zen 2, the Z2 is based on Zen 5.
Good point (I shouldn't drop words). The Z2 A, which is in the lower-end Xbox Ally X, is basically the Steam Deck's chip. AMD naming is so strange.