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According to redditors bazzite is still the better solution for the ROG Ally.
I was interested in installing it on mine but honestly I mostly play Gamepass games so it doesn’t make much sense for me
Can’t speak for handhelds, but I’ve been running Bazzite on my desktop for a year now and I love it. There are probably use cases for which an immutable distro can be limiting, but for my purposes it hasn’t been an issue at all.
I just switched my laptop and desktop to Bazzite and it’s quite cool, if I were installing a custom OS on a device I’d rather install that than SteamOS