Steve can carry a whole mountain on his pockets and still run a marathon in the exact same way he would if he was carrying a single feather. He has endurance, can punch around 1 cubic meter of stone into nothing, and yadda yadda. If that power was converted into higher jumping, stronger punches, and/or more resistance, maybe he could have a chance against some characters, but using the Minecraft movement as reference? No shot.
And without any equipment he could lose to a simple and single fairy just like you'd lose to a zombie or skeleton.
If we think about a full-geared Minecraft character, I'm not even sure if he's able to handle few characters because I dunno what is even possible at Minecraft nowadays. I remember enchantments and potions only (besides having a full armor and bow/sword). And even if he had those he could easily lose to Rumia, for example.
So overall, I doubt Steve would stand a chance against pretty much any Touhou character if we do the power-scaling like that. He'd be a phenomenon at the human village though, as the hardest-working man to ever set foot in Gensokyo. Building homes for those who need and farming resources to feed the population. All in a day's work.