So I have been looking at these, I think it is difficult to say if the price is wrong or right as similar to the PC market there is such a wide range of price points based on the hardware and specs.
The base model puts it similar to the OLED steamdeck and looking at reviews performance wise I don't believe they are too far apart. Where you lose out with the screen though the screen is still meant to be decent but you then get access to all gaming librarys a bit easier and game pass which is a lot trickier with the steam deck. The more expensive model comes in a little more affordable than the premium options such as the Legion Go 2 and the onexplayer and such.
It has reviewed quite well and the Xbox ally X is an improvement on the Rog ally X that it was built upon. However the limiting factor seems to be the OS still, it's windows and it is just not optimised well enough. I am planning to upgrade my steamdeck (my brother is having it) and have my sights on the Lenovo Legion Go S. It is comparable to the base Xbox Ally specwise but performs much much better and by all accounts it is just down to the Steam OS and it's optimisation of games and such.