99.9999% of user base won't care about a few game Valve removed from its store. And they will care even less if they decide to not publish a game at all like they did in this instance. Valve is not really losing any reputation among users for not releasing some games
Valve might lose some reputation among the devs if they keep rejecting or removing games but that is far from reality, at least for now. Things perhaps might change if game studios starts picking up AI generated stuff more and more and Valve decides to blanket ban them. But even then the users of Steam is a juicy target for devs and it is a hard market to ignore.