I'd have to see what the steering lock looks like before, not being familiar with the GS frame. Is this a keyless ride bike with the servo-powered lock? The damage, while not too severe looking, could reduce the effectiveness of the lock, but that depends on how it functions.
If it's a pin that extends next to that large chip, and was designed to be against a flat boss, then I can see how it would be renderred pretty ineffectual for another impact - it would create a weak stopping point, by applying excessive leverage at the tip of the pin, rather than against the side of the pin.
What usually happens when a steering lock is broken is that either the pin snaps cleanly, or the stop is broken off the head tube. If the pin snaps, then replacement is straightforward. If the stop breaks it's either a frame or a major job to remove the frame and weld on a new stop.
With bikes in much of the US, any frame damage would result in the bike being declared salvage (or "total loss" by the insurance carrier.)