...From all this it's clear that steam being required even for single-player offline Civ5 games isn't an 'accident', but it's the goal, so steam/steamworks was made to be taken as a whole and not to be divided up to allow choice of what to include. Steam needs to be installed and running in the background as often as possible for valve's desired goals as described above -- extensive data-mining, offering us advertising as often as possible, 'touching' us at least every 3 weeks, becoming an 'entertainment company' not merely a video game company, possibly a partnership someday with the likes of Facebook and MySpace, etc.
Newell's goals seem similar to Kotick's, which makes sense from their perspective.
Excellent write up there Nick, thank you for including all of that information. It's difficult to argue against such transparency, however it works both for and against VALVe as a whole. I do agree with your last line, and VALVe's method is vastly superior to Kotick's method. The absolute bare-basics is: VALVe do new things in new ways, thus generating more income. Kotick/Activision find new ways to charge more for the same thing, thus generating more income.
My primary issue is not with Valve's goals - I think a company in today's world needs to do more than the usual press release crap of Activision Blizzard if they expect brand name loyalty, and Valve do this in new and exciting ways, such as the Portal 2 information leak that was completed with an update to Portal. Their games are also of an extemely high calibre, and they tend to take their time on something to get it right (Half-Life 2: Episode 3) or provide a lot of post release content to make a purchase more attractive in the long term (Team Fortress 2, Counter-Strike: Source).
My primary issue with Valve isn't with their game development, but rather with practically everything else Newell mentioned. As a service, Steam is incredibly unreliable and they have an almost complete lack of customer service in any and all regards. They're simply not capable of delivering the quality of service needed to operate at the level. Their reach is well beyond their grasp.
Numerous cases of over-charging, double charging, etc., for titles have been reported, and the general response from Valve is it's not their problem. They also have the standing policy of never un-banning an account, and a ban from one title on an account bans the entire account and voids any and all licences connected to it, resulting in people losing thousands of dollars of software because they cheated in one title.
Valve also have some shady business practices in terms of Steamworks, which as you mentioned is intentionally shackled to their store. Forcing other people's customers to be Valve's customers is entirely unethical, and screams of a company who don't have faith in their services gaining steam (no pun intended) on it's own merits. It's less about providing a high quality of service or transparency - if it were, why does Steam check for updates at start up, then announce random updates once hte program has started which require a program restart, while background downloading with no notification of what its downloading - and more about ensuring a high volume of customers, which provides them with more muscle in terms of negotiating contracts.
While I can appreciate what Valve are trying to do, I've pretty much lost faith in them. Left 4 Dead 2 is a good example of their shifting business focus, and the E3 surprise could have quite easily been Left 4 Dead 3, and no one would've been surprised.
Now that they've got enough muscle with their customer numbers on the PC, they've moved over to the larger console market, with the PS3 being the only console willing to allow a developer to operate their own service on it. The decision was less about providing a better customer experience, and more about gaining better numbers of customers.
I use Steam, but I don't buy full products on it that aren't made by Valve, and I don't buy full titles that are shackled to it like Civilization V. God forbid they over-charge me for Civilization V and then ban my entire account for charging back their account for my money after they ignore my emails and delete my forum posts. If I had to pick a single company through whom I had to go through to game on the PC, Valve are not the ones I would pick.