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What I don't get is, why don't MS make a separate Game only store from the Wndows Store? Call it Windows Game Store or something. Don't lump it together with the normal Windows Store, because... yuck.

Anywho I'm not sure why people have a problem with this. Some people be, or might become, intrigued by the game that don't have Steam. After all, Steam is a 3rd party client that requires an active effort (not a lot, but you have to specifically want to download Steam to get Steam pretty much) to get, while Windows Store is automatically on your computer. Thus putting their games on the Windows Store will allow them to sell to a different audience than those who have Steam. Pretty simple really.