PC -> TV experiences are also not great in general.
Also many will not buy a desktop computer, their compute device is a phone at most.
Computer performance has felt ~stagnant for the past decade. Given the number of platforms that build to be mobile friendly, there is increasingly less need to be constantly running a power hungry rig as my main configuration when I am spending most of my time browser the internet. If I want to "desktop game" I could stream from the living room to my desk in the event it is not a controller friendly experience.
Why not? I recently bought an inexpensive gamepad, hooked up TV via HDMI and added a wireless keyboard+touchpad to the mix (I can't get used to Steam console mode). Overall experience is pretty good, effectively indistinguishable from PS4 we had in the office.
Streaming boxes like the nvidia shield or similar have their own issues, along with dropping to desktop and so on.
While a dedicated TV console has none of those issues.
For the years I had a living room PC hooked up to the main TV, I used a small gamepad-sized wireless keyboard and touchpad similar to this:
https://www.amazon.com/dp/B00Z81U3YY
The one I had worked pretty well, but it wasn't this model.
Plus, the very fact that it's a general purpose computer I can use for work, programming, and cool GPU stuff like Stable Diffusion are what made me get a PC over a console. In other words, I'm gonna need a computer anyway, why not get one that can play games over getting a computer or laptop and also a games console that doesn't do everything as well as a gaming PC?
I'm sure in the long term one would actually spend less on a PC than a console, given all these constraints.