The Steam Controller was killed off, and IIRC there was a patent infringement issue with the paddles on the back. I'd love to see a redesigned Steam Controller based on the Deck's controls. I play my Deck almost exclusively docked, but your average controller packs less functionality than the Deck's built-in controls, so it would be neat to not have to compromise.
I didn't know about the patents case, but I think the Steam Controller was considered pretty mediocre universally. It's got quite an unusual design, and it feels like an early (failed) experiment for the Deck control scheme.
The Deck controls are the best input method for games I've ever used. If they take the Deck inputs and stuff them into a handheld controller, I'd expect the end result to get popular quickly. The Deck shines where the Controller failed.
I still have my Deck and Link lying around because they were cheap (practically came free with a game) and because I liked the concept. I really hope Valve manages to get something like the Steam Machine into the mainstream, because they've got all the ingredients to become the perfect in-between for locked down consoles and messy PC gaming setups.
I bought a Sony Dual Sense EDGE controller for playing Steam games under Windows, and it's been AWESOME. Pricey, but AWESOME. I have a PS5, and used it to program a custom profile with the back paddles, but the build quality, weight, and "feel" are all better than the standard controller. Makes it truly feel like an upgrade to the stock model.