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Failing Manufacturers Are Pushing the Narrative That Consoles Are Dying, Says Ex-Xbox Exec
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Dedicated hardware still has benefits, having your phone notifications separate from gaming, if your phone breaks having your console break would suck, and imo a touchscreen will never surpass physical buttons on controllers so you'd still want those.
I personally hope the future looks more like a steam deck than a gaming phone.
In terms of touch screen control. The phone will just be the processing unit. It will wirelessly Stream the video to your tv while accepting controllers and other ik devices via bluetooth. Maybe with a switch like cradle. And I can't play a lot of games with a controller.. but my kids play fine with one.. also on the touch screen. It's what you are used to I guess.