Sure but there are lots of great games that aren't super popular that are amazing. Usually by one or two people.
A few off the top of my head :
Gnomes.- tower defense style rogue like.
Tiny Rogues - twin stick indy rpg with 15+ character classes and unique runs and 1000s of weapons and items. Super fast paced action all gameplay. Game is great on PC or steam deck.
Gunlocked - auto scrolling ship combat /asteroids type rogue like shmup. Great on the deck.
Farthest Frontier - from the grim dawn devs. Medieval city builder with raider mechanic. Like banished but better
That's just a sampling. Ive found so many great gems that people on here would shit on because (reel graphics aren't cinematic or realistic or some shit).
None of these types of gems would come out of it was only AAA or AA type games. I do wish these were on the switch 1/2.
That being said we are lacking in some genres. Half life /undying era single player fps is still not being made. Same with heroes of might and magic strategy clones and no wizardry ultima style games either.
We do get deluged with hentai boob games and other click bait trash but there are good games that do get released by smaller studios.
This isn't just a steam thing. Eshop xbox and psn are flooded too