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Probably also to take advantage of being able to have full control over the hardware & software side of things, which I reckon is probably one of the main reasons that (IMO) Apple laptops are (well, were) a league above the equivalent HP/Dell/whatever.
My thoughts were more around the thermal management side of things that I imagine was a much bigger design challenge to put a proper workstation into a tablet instead of a traditional laptop. Which is likely going to be a primary concern for a PC in a handheld games console form factor.
Was not suggesting Microsoft get into C/GPU manufacturing for the sake of a handheld.
The Surface I think was mostly there to demonstrate that you could make a not shit looking Windows laptop and try to nudge the main manufacturers to up their game. I don't imagine they've actually made anything particularly significant from the hardware itself.
Far more lucrative to get people onto Xbox Game Pass subscriptions and cloud gaming. Let Apple/Intel/AMD/Nvidia worry about the hardware and just make sure that their stuff runs well on all of it.