

With respect, this doesn’t make any sense. If you want a joystick controller, just buy an Xbox controller that everything’s compatible with anyway?
The trackpads shine when one needs to emulate a mouse/kb in non-controller games; a nightmare with joysticks.
Not everyone’s a big kb/mouse fan. My sister refuses to use one on the HTPC.
Hence I think that was its non-insignificant niche; couch usage. Portable keyboards are really awkward and clunky on laps, and the steam controller is way better and more ergonomic than an integrated trackpad.
Personally I think it was a smart business decision, because of this:
No one’s going to buy a steam-branded Xbox controller, but making it different does. And I think what killed it is that it wasn’t plug-and-play enough, eg it didn’t work out of the box with many games.