Yes, but using a standard external storage format is not why. Xbox uses a completely bespoke proprietary card that only approved vendors can use. This is just more expensive, which is basically how technology works now.

Considering all of the PC handhelds being released, 1080p is the best you can really do on a handheld screen with modernish games. Steam Deck is the most successful and it is only 800p. Having a 1440 or 2160 screen would decimate battery with little to no benefit.