When they launched, afaik they were being pretty selective. A game being on Steam meant it was a good game, and in a way they were actually a publisher providing you with high converting distribution channels. It was like marketing and PR were almost baked in.
Now being on Steam means nothing. In fact they happily declared it means nothing: https://www.pcgamer.com/valve-says-it-will-no-longer-police-...
Steam even normalized a class of game (Early Access) that actually means negative things in general.
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Once they transitioned from publisher to glorified CDN + Forum Hosting, I think they should have reworked the pricing to reflect that.