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Just checked. Still needs it. I don't have Rosetta installed and I don't want to install Rosetta just to be able to use a game controller with DuckStation or Aethersx2. When I can also connect a PS4 controller and not need any of that.
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You have an old Steam.app stub, download the latest one and rosetta will not be necessary.

If you had rosetta it would be able to self-update to the new universal binary, without it you have to do this one update manually.

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I downloaded from here and I instantly get a pop-up about requiring Rosetta.

https://store.steampowered.com/about/

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Odd if true. It's clearly a universal binary, not sure what's going wrong for you.

$ file steam_osx

steam_osx: Mach-O universal binary with 2 architectures: [x86_64:Mach-O 64-bit executable x86_64] [arm64]

steam_osx (for architecture x86_64): Mach-O 64-bit executable x86_64

steam_osx (for architecture arm64): Mach-O 64-bit executable arm64

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This appears to only be in the Steam beta - the version available for download still requires Rosetta. There doesn't seem to be a direct download for the beta - you have to opt into it after installing Steam.
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Not the OP, but I just downloaded the latest stub from an M2 MacBook Air using Safari and it appears to be an x86_64-only binary:

  % file /Volumes/Steam/Steam.app/Contents/MacOS/steam_osx 
  /Volumes/Steam/Steam.app/Contents/MacOS/steam_osx: Mach-O universal binary with 1 architecture: [x86_64:Mach-O 64-bit executable x86_64]
  /Volumes/Steam/Steam.app/Contents/MacOS/steam_osx (for architecture x86_64): Mach-O 64-bit executable x86_64
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CMD+I on Steam.app says: "Application (Intel)".

% file steam_osx

steam_osx: Mach-O universal binary with 1 architecture: [x86_64:Mach-O 64-bit executable x86_64]

steam_osx (for architecture x86_64): Mach-O 64-bit executable x86_64

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