Not entirely. SteamVR on Linux is almost that bad, yes. With ALVR you can try to use standalones on SteamVR, but it’s not very stable. Most games will “run” under SteamVR and modern proton, I’ve only encountered a few situations where they don’t, once again caused by kernel level anticheat. SteamVR does have major issues with stability and reprojection, which makes the VR experience much worse overall.
However, Monado and WiVRN (+ OpenComposite) are great when using Envision. Not all games run, and some have input issues, but it’s significantly better than SteamVR. With a couple overlays, you can get most functions working as expected, like desktop view, camera passthrough, etc.
As for “power management” and “bluetooth”, the only thing the Valve Index uses bluetooth for is power management. That doesn’t work in the drivers on Linux, but there are scripts you can use if you have a separate bluetooth dongle. It’s not a full fix, but not as painful as using an Android app or unplugging the basestations.
As we both noted, it requires setup and troubleshooting, and as someone who uses Linux for VR gaming too, I can’t recommend it to the average person. That does not make Windows a “requirement”, just much easier and the better plug and play experience.
While it might seem interesting for your usecase, please be careful which specific distro you use, especially when it comes to “windows-like” distros. Wubuntu (previously LinuxFX) has terrible security for your payment info, and the developers have made a ton of questionable decisions.