The Nvidia leak suggests Drake is definitely not the 'cheapest possible' hardware and DLSS is a tried-and-true method of upscaling to 4K with great results, so they earn the right to plaster "4K capable" all over the box. Comparisons to the Steam Deck have limited utility, since the Deck is a handheld PC running mostly Windows ports through the Proton layer. I expect native Switch Advance / Ultra / 2 ports to perform better, including PS5/XSX ports. Games are very scalable and a lot of PS5/XSX games need to run on Series S and less powerful PCs, Drake has a better chance of receiving those ports than the current Switch.
Despite the leak's unsavory existence, it gives us a good starting point for speculation because it surpasses a lot of expectations ("Nintendo doesn't care about specs/will never do RT/DLSS"). I expect a high price point and a long lifespan.