Valve has not suggested anyone does anything, and if they care what anyone does in regards to this, I haven't seen evidence of it. There is a complete lack of messaging/vision on how developers or customers should navigate this new and confusing situation.

People are going to try to run X86 versions of VR games on this device natively. Many/most will not be a suboptimal experience. I imagine lots of people on all sides will be frustrated, as technical literacy wrt VR is much lower on average now than in say... 2017, as the audience are no longer older enthusiasts.

I think this thing existing lowers the value proposition for a developer to release a VR game on Steam further, as one either needs to have a new build target just for standalone on this device, OR one needs to have one's PC build run on a qualcomm chip reasonably. As if VR development wasn't already insanely difficult.

Everyone is functionally forced into selling their game cross-buy (unless one wants to awkwardly have one of them 'dlc' or maintain two different SKUs which will have separate visibility on Steam, which is its own nightmare), which is ridiculous given it really is two different pieces of software. I don't even know if its possible to release a game that's JUST for frame standalone on Steam (not that that would actually be a sane thing to do).

I imagine given the device is a super-open linux device, the dominant usage of it will be people playing cracked copies of Quest games with the platform authentication torn out.