Other than preference on aesthetics, what is the point of these SFF machines when gaming laptops exist? Is it hitting a price point? Performance metric at specific size? All these smaller rigs always come off as vanity projects to me.
I think the paradigm(?) might have shifted these days, from gaming laptops being 'the thing', to the Steam Deck and adjacent ROG/GPD handheld devices if you genuinely want to do portable PC gaming.
In my experience, you can't really do much on-the-go gaming on a gaming laptop. Trying to play on the built-in keyboard and trackpad is ass for anything other than a point-n-click adventure or turn-based game in my experience, so they quickly end up rooted to the spot, or at least never leaving the house.
So the 'Gaming laptop' might be on its way out, but people still want something that doesn't hog desk-space, looks good, is bre-built, and has a decent amount of grunt for gaming. SFF PCs fit that bill pretty well, and can also be better bang-for-buck than a gaming laptop due to the bits they don't need to include.
They can also be easier to service and upgrade - if they have been built with that in mind.
BTW, you can probably also look forward to eGPU docking stations becoming a larger market in the future, as more people with Steam Decks etc look to hook them up to a TV and extend their use.
Personally, my desktop setup is a MinisForum UM780XTX with an attached GPD G1 eGPU, and a WinMax2 as my Steam Deck-adjacent portable device.
I like the setup quite a bit, though the fact that the G1 is a first-gen product does show as it can be a bit wonky a times. There is obvious room for innovation and improvement.
ANyway, to me, this news looks like Nvidia trying to get into the space that they left open for AMD all these years, as every small/portable PC device has been running AMD silicon, with Intel occasionally being offered as a 'do we really have to?' option to those still stuck in that mindset.
I guess the question is, how serious is Nvidia going to be? It feels like they've been out of the ultra-small-and-low-power game for a while now, and they are making massive B2B bank from selling to the AI market. The SFF PC market is still pretty niche and hobbyist, so unless it suddenly explodes over the next couple years (and I kinda hope it does TBH), I have a hard time believing Nvidia is going to dedicate their top talent to the sector.