I see no real reason for steam to exist. I think most developers don't either at the moment. They are interested in making the most $$$ for their work, and the terms which steam offers right now are probably comparable to most publishers' (although I'm not certain). It might be cool in the future if distribution over steam cost less, but as of know I doubt that's the case.
I have bought boxed copies even of games which require steam, because I like having hard copies, even though you can't use them by themselves without steam installed (those are pretty much all Source games). I use games outside of steam whenever possible. I don't hate steam, but I don't like it either. I've never had a problem with it, but I've never really been impressed with it either. It's just some entirely useless code running on my system.
Now, they're trying to experiment with things such as a "steam community," which includes stats,and game overlays for friends lists/messaging etc. which is interesting, but again- nothing which I find of much use... yet.
Some people find having an online downloadable service for games great fun, but I don't really care for it. Now, if it actually cut prices due to cheaper distribution, I'd be sold. However, it doesn't (yet, at least - it might in the future, who knows). Games on steam cost the same or even more than hard copies most of the time.
Does it stop or curb piracy? LOL. If you know where to look you will see people reverse-engineering the steam client and downloading games for free right from steam servers. So, in a way - steam actually helps people download games illegally by offering them a service. You just have to have the set of mind to do that kind of stuff and of course be smart enough or at least know where to look. I haven't done it, I just know it's possible. And I like my multiplayer.
P.S. I guess it autoupdates my games... I'll give it that. I think most games have standalone self-updaters or patch notifiers nowadays, but it's probably more streamlined for developers to issue patches to one provider rather than maintain a server and all of their own games.
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