Cheap at twice the price. Buy Buy Buy!
The handheld is like 1700 usd. "Added to the end". jews first. I recently purchased a pet eater handheld capable of handling some steam level games; android based and fully customizable for emulators.
How does it perform compared to a PS5?
It will depend on the game. Though, it will play games that the PS5 won't so that is part of the pull I think. It is likely you can build a better computer yourself if you know how Legos work since building a computer is almost that easy now.
At this point the most expensive stuff is basically RAM/HDD(SSD).
For some people this is probably a good jump into PC gaming in the living room. To the people that already are PC gamers and know how to build their own stuff this is very expensive (especially if you are willing to look at used hardware).
Oh, you can also use it as a normal computer too if you want. You can't do that with a PS5. It will let you connect damn near anything to it over USB/etc so that could matter to some people. If you hate SteamOS you can install something else or you can cringe put windows on it too.
That is for the 512 GB model. There is also the 2 TB model which costs more, and both come with the option to bundle a Steam controller with it, which costs even more.
At least they make it easy for you to upgrade the storage without buying the higher cost version if you want.
The consoles try to make that impossible and want to lock you into specific drives/vendors, etc.
I already have my pc connected to a tv, this has no appeal to me