If the handheld had failed, I could have navigated by map reading.

Since direct can only be given under radar control (IFR GPS or
otherwise) if you lost your handheld you could have just asked for
vectors. I used to note "VFR GPS on board" on my IFR flight plan. I no
longer need to, ATC seems to assume everyone can take direct now. The
/G just lets them know to offer you a GPS approach.

-Robert