This is good news overall. It could cause some problems with even more developers making lazy asset flip games and such, but their recent attempt to police content landed them in alot of hot water, especially when they told the makers of a bunch of visual novels with erotic content that they had to remove their games, but didn't tell the same thing to makers of AAA games with erotic content such as Witcher 3. Deciding what you should or shouldn't play should be an individual decision, not something that Valve decides for you.
I find the idea that everything needs to be curated as a bad.
For one, you've got a small select group of people deciding what you can/cannot buy based on what they think is allowed/not allowed. Out of the millions of people that use the storefront, a good chunk would end up being alienated thanks to the small curator group's idea of what is good/bad.
For another you have that curation group possibly allowing what is deemed as garbage from another group onto the storefront. This in turn would annoy that group for quite some time, if not indefinitely. Valve has already pointed out that they have not only seen people being upset when one thing changes, but that other groups voice the same displeasure when things are reversed. They know there is no winning, no making everyone happy, not even their internal staff, who have previously voiced conflicts with one another.
This decision is ultimately for the best. They only have two core rules to go by, while at the same time developing more tools for users to make use of in terms of filtering what they would like to see/not see from the storefront. All without harming each other's wants/not wants on the storefront itself.