You can update your version of Fedora through the updater software as well but it’s a very clear separate process that is initiated manually.
Distro version updates bring major updates to key packages - the one you’d notice most would be to Gnome, the desktop environment. There will be other things too that get only bugfix and security updates during the life of that version, and then after a while that version will lose support and you won’t get any updates at all (https://docs.fedoraproject.org/en-US/releases/lifecycle/).
Updating is very safe and reliable. I’ve had my Fedora install at work for 3 years, updating periodically and it’s working extremely well.
Yeah, the ROG Ally particularly makes zero sense to me and misses the point. It runs Windows and it doesn’t have the touchpads.
The touchpads really broaden the utility of the console, from being able to select small UI elements in normal programs to being able to play more mouse enabled games (FTL being the most recent for me).
And Linux is the real special sauce - nobody seems to get why Valve did all that work rather than “just” putting Windows on it. Windows isn’t a selling point (you can put it on the Deck if you want), it’s slow, the UI doesn’t work well on that screen and you lose out on being able to suspend games etc.