In the Events of Balto 1 when everyone finds out, all of his lies cause him to be shunned and disliked by those who used to respect him. 
Steele does not Return or Mentioned in Balto 2 Wolf Quest and Balto 3 Wings of Change. People have come up with the ideas Steele has Die one way or another. 
In my opinion, I think Steele has the Skills to Survive. Steele used to be the lead dog of the fastest dogsled team. As well the ideas Steele was going to return in Balto 3 Wings of Change as a scrapped ideas. I have always pictured the ideas Steele having a Second Chance, Redemption, etc. Bad thing Balto 4 is a Fan-made idea just like Half-Life 3 is.