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You are not misremembering. It did give us one of the most hilariously awful controller designs (though I applaud them swinging for the fences), and it it was the precursor to the steam deck, so it wasn’t completely worthless.
If they can take the lessons learned from their recent successes with the steam deck, I could see them making something that sticks around for a bit. There’s a market for people that want the steam ecosystem but are intimidated by PC builds or the toxic sub culture that sometimes permeates PC gamers. Having a pre-built PC with proper backing that just works out of the box with minimal tinkering could be an attractive option for some.
I still have 2 Steam Controllers and 3 Steam Links at home, one of the Links and one Controller are for streaming media to my TV from my PC (the rest are spares). I very much like the Controllers for Desktop use, but they aren’t great for classic twin stick games. They excel at stuff like RTS, FPS and Simulations tho!