Valve can't be a monopoly because there are plenty of other options. Direct2Drive, Games for Windows, Impulse are DIRECT competitors. OnLive, GameTap, GOG.com, and Gaikai are competitors, but they are not one to one competitors. OnLive and Gaikai do the streaming thing so they're a bit different, and GameTap and GOG offer (mostly) older games.
Valve also can't be a monopoly because I have seen no evidence of vendor lock-in with them. If you buy a game through them all you have to do is run the FREE Steam program and connect to the internet like once a month. That is it. I've also heard before that if Steam were to ever go under they have a system in place to make sure nobody loses the games they OWN.
Also, one of the reasons Steam is popular is because publishers get 70% of sales for a Steam sale, while other places only give them 30%. That is called attracting people to your service. I have not heard of a single thing regarding Valve doing anti-competitive practices with Steam. I may be wrong, but it seems like they're actually being ultra-competitive, so much so that all these other companies with greedy shareholders can't one-up them (Valve is a privately held corporation thank god)
OnLive? To quote from another OnLive article I posted at: The last time I heard someone ask OnLive about what happens to purchased games if they don't make it their response was basically: "for people concerned about the viability of the OnLive platform, perhaps renting games is the more attractive option for them." Not to mention with OnLive you don't even own the games to begin with. You pay for them and then to continue to play them you have to pay more money per month. Talk about vendor lock-in. It isn't like they are even multiplayer games. Paying a monthly charge is acceptable for an online MMO or something but not a single player game you paid full price for.
Robochump: yes, ISPs will not like this. Expect a special "gaming" package from your local cable ISP. Only $200 a month with a 3 hour a day cap, because they can't afford all that bandwidth. (Yeah right).
The part where it said: "The fear is certainly understandable: a customer installs the game, installs Steam, and discovers other great digital titles that can be purchased, downloaded, and stored in the cloud without having to leave the house. This also keeps potential customers from purchasing the same digital games from distribution platforms offered by the major retailers." Oh god! Monopoly! Oh, wait, you're saying you're scared because Steam's store does a good job of offering sales, special discounts and related titles? Sounds like you're just mad that they are doing good advertising. "All without having to leave their house"? Um, that is what every other digital distributor does. Steam isn't keeping them from buying from them.
Brick and mortar stores can screw it. Gamestops have a tiny little rack that most people don't even know what it is. What is it? The PC game rack. They have no right to complain. Don't they think consoles are more profitable anyway? Oh wait, they have seen that Steam has found a way to make PC gaming more profitable and they don't like it. Get over it.
You can't imagine how mad I would be if some idiot politicians decided these whiners were right and tried to break up Steam.