it’s pretty much impossible to have someone join the market and truly be competitive against Valve, even if they offered a product with all the same features and more
(1) Many PC gamers simply wait for games to go on sale. Epic buying exclusive agreements isn’t as dominating of a strategy as they think it is; even if it’s expensive.
(2) Steam is the incumbent. You have to be better in order to be worth it to switch. As you mentioned, Epic is lacking in features
(3) Valve has not treated the desktop market the way Apple as treated the app store. Look at how far Epic has taken Apple to court; compared to their biggest rival, Valve
(4) Valve has put in alot of work in other layers; such as making open hardware and contributing to AMD GPU drivers on Linux. They work on the whole platform, even parts they do not directly make money off. This is called investment.
(5) What exactly would you break Steam into being? One app for reviews, another for buying, and another for launching games? Break the development studio into a different company? Even if Epic is throwing around money made from its game engine and games?