Im kinda ambivalent about Steam. I think its a damn good idea, and has many merits--but also has huge potential for abuse and quite frankly needs a bit of work. Valve hasnt been abusing the power it could give them, but I would hate to see what happens when a large publisher adapts a similar system that is even buggier and starts locking people out of all manner of games or just deciding to stop support certain games (preventing people from playing them at all) alltogether.
In short: good idea, still needs work, and the idea has troubling implications, though Valve doesnt really worry me in terms of those.
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"Good people do not need laws to tell them to act responsibly, while bad people will find a way around the laws."
--Plato
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