Is Steam Hardware not encrypted by default? Most Linux installs provide the option these days, no?
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No, it is not. And yes there is LUKS/dmcrypt-plain/ZFS Encryption
Those are all generally by disk or partition though (sure you can have /home as a mounted encrypted partition but then it’s a fixed size against the other partitions).
In the interest of (I assume) making the system itself unencrypted for updates and troubleshooting while protecting sensitive user data, valve built
https://gitlab.steamos.cloud/holo/dirlock#dirlock
Which encrypts the home directory while keeping it part of a single partition
It should be noted they aren’t the first to build directory encryption, https://wiki.archlinux.org/title/ECryptfs is still part of the Linux kernel but it’s unmaintained and may be removed