Ordinarily, I'm not a big fan of Steam (except for their prices) and considering how annoying their Windows client can be, I'm not super confident about a Steam OS. However, in all honesty, I would have abandoned Windows years ago if it weren't for video-games. Windows is no longer necessary for casual PC use. Because of that, I'll be watching this with interest. I assume that games purchased elsewhere (that use Steam) will work with the Steam OS.
Yes, in a sense, the success of Steam does prove that there is a market for this, though that doesn't mean that there isn't a significant segment that doesn't still want a traditional console. I know I want both--which is to say, I don't really want my PC setup to be the same as my console setup.
