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I have dozens of games in my library that are no longer available to purchase. Often these are games with expired music copyright, though some just removed the music in an update instead. I don't remember a single withdrawn game that would get removed from my library.
My point was it's likely within Steam's rights and terms and conditions. If they needed to or wanted to they likely could remove a game from someone's library but they likely know the overwhelming backlash that they would face.
For example games like Rimworld and Disco Elysium were, at a time, banned in Australia. I don't believe they were removed from online storefronts but if there was ever enough legal pressure maybe something could have happened. There is a Steam Support page for regional restrictions but it doesn't mention anything in regards to accessing games that have become banned in your country, contained malicious code, or somehow were infringing on copyrighted materials.
I think Codename: Gordon and Order of War were removed. I could be mistaken though.
On a sidenote I imagine removing Steam's DRM using a Steam emulator is in some ways against their terms and conditions. Even though there are some DRM free games on Steam like the original Fallout if I am remembering correctly.
Edit: In regards to my last point I think this is the section from the subscriber agreement that may involve Steam emulators
Yes, I believe you're correct in terms of them being within their rights to do so. I'm just not aware of them ever actually pulling this trigger, but they technically can.
Yeah. Reminds of when they changes the user agreement to prevent class action lawsuits.
Unless there's a major shift at Valve I couldn't see it happening anytime soon. My fear would be once it happens once that it would become more common.