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I think it just depends on the use of it. I think it's great to get content updates and such to games like TF2 and it's awesome to have the ability to redownload any of my games from Steam should I not have the disk available.

However, crap like intrusive DRM and gouging DLC (paying to 'complete' the game for example) can be annoying
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You can still show off your game collection to others even if you don't have the disk. Take achievements/trophies, people can see the games you've played. If your on the PC, you could take all your game shortcuts and put them in a single folder to show to people or if you're feeling sassy, you could take a screenshot of that folder and print it out.

:P