There are a lot of guys who get World Title runs, one individual run really doesnt mean a guy was great, often it is the culmination of a story, etc.
In the "modern era" of wrestling, circa 1980 and on, the time when Vince Jr was taking over WWE and Jim Crockett Jr was taking over as the NWA's top guy, there have been a small group of guys who have dominated as World Champions, Hogan, Flair, Hart, HHH, Cena. Maybe you put Savage and HBK in there. Many other guys have had a run, Ultimate Warrior, DDP, Steamboat, Ron Garvin, St Slaughter, The Mizz, Big Show, Kevin Nash, Austin, Taker, Edge, numerous others. The first group dominated the title scene for a decade plus because they could consistently elevate ratings and crowds. You can argue about various things and the normal ups and downs of the business but every name in that first group consistently made money for the company, which is the ultimate goal of the top guy in the stories.
In that second group there are guys who had great careers and helped draw good money but never dominated as champion. Austin (injuries) & Rock (quit business) could have joined that 1st group if some things worked out differently. Taker's character always seemed better chasing someone than being chased, the reason his reigns often were short and uneventful even though his feuds to win the title often were very popular and drew well. Many of the other guys never "had the it" to be a long term answer at champ, although they often had compelling stories leading into their title runs.
Does a guy deserve the title ? Well, is he over with the crowd, do you have a compelling storyline that will interest people ? If so, then that guy is worthy of the belt. Now Steamboat had those qualities and his title win came off great, it was an awesome moment. He did not however in my opinion have enough charisma to carry a promotion long term, through multiple opponents and stories. I believe this is why his run was short, ultimately putting over Flair, who went on to have strong feuds vs Terry Funk, Lex Luger, & Sting consecutively over the next year, plus a short run vr Great Mutah as well. Did Steamboat deserve to be champ ? Id say so, did he deserve a long running dominant title run ? I dont think so.
Now should he have been WWE Champ ? He would have been the same thing, a great short term run, not a long term answer. He was very limited in his ability to portray anything other than a squeaky clean family guy, he lacked Hogan & Flair's charisma, and honestly HHH's as well. Even Hart had the ability to portray a villain, or at least inject some nuance into his character. Either during the "Hogan Era" or "Hitman Era" I think Steamboat could have been good for a short term but he wasnt better than either of those guys, same as he wasnt better as an overall performer than Flair. Staying in WCW he was not as entertaining as Sting and if he had gone back to WWE he would have been a touch below HBK & Kevin Nash in terms of overall entertainment value.