Anything you can get on Steam is available and you can actually get Epic Games store stuff on it too so availability isn't the issue. It is 100% a hardware thing. The Steam Deck hardware, IIRC, is roughly the equivalent of a PC with an AMD 3750x and a GTX 1050 - so perfectly competent hardware in its day, but the day has come and gone.
That said, because it's only driving an 800p screen (which honestly in OLED looks fantastic IMO), it doesn't need as much power, and there's some black magic going on that seems to make things perfectly playable that shouldn't be. Lots of people managing to get a stable 30FPS in Cyberpunk 2077 on their deck, for example, lots of people use it for stuff like Elden Ring. I just don't think it's the right tool for that job, and for the most part those aren't the types of games I play.
There are some games that simply don't work at all due to anti-cheat software blocking them, or the like because they assume everyone uses windows and SteamOS is linux based. You can't play Fortnite, for example, which I consider to be a feature.
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