I see this echoed relatively often, and I have to wonder by what metric people consider valve have "failed" when they're the largest video game distribution platform on PC, raking in money hand over fist and constantly trouncing their competition such as EGS, Galaxy, Origin and UPlay. People don't just use steam because they have to, they choose to use it because it's the superior product.
> I wish they were more video game focused
I suppose a lot of people look at Valve and think because they haven't made a hit game in a while that's why they're a failure? Personally I couldn't care less if they never made another game again; there are thousands of video game companies making great games every year, and no-one else is doing what Valve are doing in regards to Proton and other Linux desktop work. The steam deck isn't a particularly novel idea, but it's definitely one of the best examples of a handheld portable gaming device running a desktop OS.
For someone who used to be a diehard GOG fan due to their no DRM policy, my entire library is now on Steam due to their Linux efforts, not just because it's the best client, but because I want them to keep doing what they're doing.
I think network effects play a bigger role (no user wants to have to juggle multiple game launchers and developers mostly cannot afford to not be on Steam) but yeah their competition being overly greedy and/or incompetent does help as well.
And just adding on to this, they also a have a stable of some of the most successful (and presumably lucrative) games released in the last 20 years: dota 2, cs:go (admittedly, not in-house to start), TF2.
Granted, a lot of these are towards the autumn of their lifecycles, but it can't be discounted.