They could have easily crammed the Steam Deck full of stuff to make it hard to use for piracy - locking down everything, making it usable only to play games you legitimately own, force you to go through who knows what hoops in order to play games on it. That’s what Nintendo or Apple or most other companies do.
But they didn’t, because they realized they didn’t have to. It’s 100% possible to put pirated games on the Steam Deck - in fact, it’s as easy as it could reasonably be. You copy it over, you wire it up to Steam, if it’s a non-Linux game you set it up with Proton or whatever else you want to use to run it, bam. You can now run it in Steam just as easily as a normal Steam game (usually.) If you want something similar to cloud saves you can even set up SyncThing for that.
But all of that is a lot of work, and after all that you still don’t have automatic updates, and some games won’t run this way for one reason or another even though they’ll run if you own them (usually, I assume, because of Steam Deck specific tweaks or install stuff that are only used when you’re running them on the Deck via the normal method.) Some of this you can work around but it’s even more hoops.
Whereas if you own a game it’s just push a button and play. They made legitimately owning a game more convenient than piracy, and they did it without relying on DRM or anything that restricts or annoys legitimate users at all - even if a game has a DRM-free GOG version, owning it on Steam will still make it easier to play on the Steam Deck.
It’s true. Pragmatically speaking if you don’t have access to the server software you can’t play it if the servers go down, and besides reverse engineering or the goodwill of the developers I’m not aware of any games with online components that continue to be playable after their servers are taken down.
Back in 2000-2012, a good lot of mainly singleplayer games had optional multiplayer modes. Think Halo, Starcraft, TRON, Titanfall, etc. Even DOOM 2016 had it. These games function with the servers down.
Well then allow me to name a few:
Battlefront 2 (the original), still active when the servers have been down for years
Titanfall 2. Official servers aren’t technically down, but pretty much unusable and NorthStar is the alternative
Counter strike 1.6 is pretty much just community-run servers, same with day of defeat: source. I don’t know if they are tied with valve that if valve shut them down, they wouldn’t be searchable.
Supreme commander: Forged Alliance
Hell, Battle for Middle Earth II still has a small community
Valheim has never had official servers. I run my own via docker on debian
Unreal Tournament 1999
Minecraft (official servers aren’t down, but if they shutdown there would still be 2000 servers)