With boosted Switch 2 specs and more third-party titles, Nintendo may convert some PC gamers to its handheld. Even so, a new poll indicates that Steam Deck fans aren't convinced. These gamers prefer to hold off for the Steam Deck 2 or a more powerful SteamOS handheld. https://www.notebookcheck.net/Valve-shouldn-t-release-the-Steam-Deck-2-to-compete-with-Nintendo-Switch-2-specs-according-to-poll.1001042.0.html
Really don't know why people are comparing a console to a PC just because they're handhelds. They are different platforms. Steam Deck isn't part of the console wars.
I think the question is not whether to release Steam Deck 2 because of Nintendo Switch 2. But rather whether to realease Steam Deck 2 at all.
Releasing your own hardware is an expensive and risky endeavour. Licensing Operating System that allows to play games with better performance is on the other hand nearly risk-free, and benefical for both Valve and a hardware manufacturer.
Other manufacturers are already providing competitive hardware, all they need is to include SteamOS on their devices, and they can technically release a second generation of Steam Deck.