ik lots of ppl still play arcades, but me, by myself, would rather find your game in the crowded steam and noisy tiktok than on a physical machine. I mean, most people that play games do so on computers and mobiles, at most consoles. No one wants to play games in physical machines you need to spend hours in a car to reach, and then spend money for a section. And if you're the kind of person that likes playing stuff irl, you would rather play soccer or basketball with friends than an indie game.
But it depends on the game you're making maybe. In 99.995% of the cases, just stick with the old methods, but if your game is a 90's themed fighter or a CHUNITHM like rhythm game, maybe you could try arcades. But then, i don't think an indie can do that, even more if this indie is a beginner. Is way easier to publish your game in itch.io than paying something to make an arcade for you and placing on places. And even if this is easier than i think, publishing on itch.io is free, unlike the whole arcade thing.
So no, even tho arcades aren't really dead, they will not replace steam anytime soon