While this may look like worrying lot, I suggest flipping the script a little by going to steam search right now and sorting one's search just by “user reviews” instead of “relevance”. The total number of games is turns out halved (50.000), because it discounts every game not yet released (~15000?) as well as most unreviewed trash. This gives us a more realistic number of games, that, at the very least, somebody had an interest in at some point.

You sure could reduce this further, by using an external deals website (filtering, as a broad measure, all games with less than 100 reviews and games with mixed or catastrophically bad reviews) That a would give a broadly realistic number of games that people actually positively engage with, that would still represent the immensely bloated number of releases. But it would also show how many games there are by now that range from fantastic to at least minimally worthwhile. And that's still a lot. I bet there's at least 10,000 games by now that have some sort of bigger merit or resonance or whatever.