On second thought, disregard, the above comment, my short lived dream would become a nightmare. While it would be awesome to have steam games on my Xbox for when I'm feeling lazy, I don't really want any more console likeness creeping into my PC experience than already has.
Can you guys imagine if suddenly Valve started to compete with Sony or Microsoft on the console market but instead they release something that is more PC oriented? I'd buy that in a heartbeat just to support them. For instance, all games must have mandatory mouse and keyboard support or something like that. Heck, I remember when Microsoft first announced the Xbox, I never thought they would make it in that market and here they are still. True that Microsoft has a bigger bank account than Valve but I'm just saying it would be pretty damn awesome if they decided to go all the way.
Microsoft and Sony purposely make their consoles inferior to PCs because they don't want console sales eating into their PC profits. Valve has no such conflict so they are free to make a superior device for gaming.