There are already headsets with decent text fidelity, but IMO the problem is now on the host side. I tried to get an XR desktop env running (Stardust https://stardustxr.org/) on Linux but ran into graphical issues. The Windows ecosystem is much better though.
I use Xreal Air Pros for gaming and sometimes working if I'm mobile. Resolution isn't great, but I find them better than looking at a small-ish laptop screen or the Steam Deck screen. You can definitely read text on them, but maybe not small text. It also helps to have prescription inserts.
And now I'm curious if the Steam Frame allows inserts or fits well with glasses on.
2160 per eye- so a bit more than that in width… I’m thinking if you do 2x pixel density it could look pretty clean. But that’s not a whole lot of real estate… that being said, i remember when 1280x1024 was incredible and that’s the same ballpark as what you’d get.