I always wondered about what happened to Steele after the events of the first movie. Certainly he lost followers, credibility and maybe some self confidence due to his past behavior, but he may still be a little proud and bullie, he even might be rancorous about Balto.
Well, after the first movie, I think Steele was not a member of the sleed team anymore, and as the time pass by, may one of Balto's puppies take his place as the leader.
Render (c) Me
Characters, original images and background (c) Universal