Conifers still exist in places other than mountain slopes; boreal forests and taigas being the perfect example. It's more a question of climate than terrain as far as I know.
Losing needles is not a disadvantage as much as an advantage in the most northern regions of the world where the old needles can still do photosynthesis when there's good light but it's still too cold outside to grow new leaves and get nutrients from a still frozen earth.
Note that a few coniferous trees like the larch are in fact deciduous.
Leaves were a 'major invention' and a 'big step up' in climates where they are the most appropriate thing. In some climates, coniferous trees still dominate because they are the most adapted species to that specific environment. Evolution works through what's the most apt at surviving in given conditions; dominance is conditional to the environment you frame it into.