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Gabe Newell quotes the same 7.50 Legend. Of course he was doing it to pimp Steam. So who knows if he was exagerating.

That's the thing. The 7.50 I believe was for an individual developer who went through a publisher.

Steam would let a small developer go through steam, charge full price and get the other half of the pie.

The problem with "what they make" is nobody takes into account things like shipping, packaging, printing, box art, advertising, disc production, liscensing fees (Which don't exist on PC correct?)

Activision, a publisher and devloper would in fact get both publishing and developing revenue.  But also publishing and devloping costs... publishing i believe can actually be MORE expensive.