A few things:

1. It gives manufacturers a blueprint for their devices. You will see a lot of handhelds running SteamOS from different manufacturers. You will also see a lot of small “gaming boxes” with SteamOS to plug in your TV. That’s great!
2. Game Developers will have one distribution to test their games on. One of the bigger problems linux had before SteamOS was the big clusterfuck of different distros. Great for users, but a big headache if you’re developing for it. Now you can say “it runs on SteamOS”, test on SteamOS and you don’t have to deal with bug reports from people running RedStarOS
3. It’s Valve. It’s a company. They are the biggest store selling games and they are building their moat to protect themselves against Microsoft, Apple, Epic & Co. That not exactly great for users, but also explains why Valve is doing this linux push. To prevent Microsoft from abusing their Windows monopoly to crush them

The biggest problem with such a clause is that it is hard to define “evil”, even if it seems clear to you. Some people think that abortion is evil, so are abortion clinics banned from Json? What about the military and weapon manufacturers? Killing is evil, but you all know how the discourse about the military as national heroes that can’t be evil in the US goes. What about a service like X - is it evil? Can you define “evil” for a surveillance tool that brands itself as ad tech?