I could certainly see this being the flagship for the launch of a steam cloud streaming service a la Stadia, Luna, geforce now, etc. That does beg the question of how they would price it. I think they would have to price the hardware very aggressively or sell at a loss -- the cost of entry on these other streaming services is what, $50-60 for a controller? Although if gamers with big steam libraries could bring them with them to a streaming platform rather than re-buying then that would be a major differentiator.
On the local streaming front, I've struggled to do in-home streaming in a comfortable way with anything but a hardwired network between the PCs streaming. Maybe this will be different if they optimize it for wireless streaming, but on laptop wifi -> desktop ethernet I found it to be fairly high latency and lossy.