Can Steam remove the game from my library?

?

Technically, yes, but we are all human, and make mistakes.
Take for example, you accidentally had something listed at a price 5 times less than the amount it cost you to make (let's say, a set of furniture). You got 500 orders for said item, and decided to honour the price error in such a situation that you would actually go out of business.
Legally, one might say you have to honour a pricing error, but are humans really assholes that they have to sue someone because they couldn't afford to honour their honest mistake? It makes you think, I would hope.

People have rights? Sure. But it's not you out of pocket.