Are there games out there similar to how the PSP and the 3/DS had local multiplayer? Can a emudeck emulate psp games and local multiplayer?
There’s another thing that might be relevant: The Game Mode UI on the Steam Deck doesn’t support creation of ad-hoc wireless networks (afaik). I think (but never tried it) that it’s possible in Desktop Mode though.
Short version: probably not. Most emulators don’t support networked multiplayer.
If the game natively supports LAN play on PC, like Minecraft or Among Us, then yes, it’s possible to connect a Steam Deck to other machines via shared wifi or an ad-hoc network.
However, if the game was designed for a custom multiplayer protocol, like a GBA or 3DS game, then you’re out of luck. There are rare exceptions; some games are so popular that they have mods for network play, such as Project M for Super Smash Bros Brawl. But outside of those rare exceptions you cannot play emulated multiplayer over a network.