While I agree the half and half thing is pretty stupid, it all comes down to western culture and employee subjectivity. Eventually Valve might clear things up or have an Adult corner but it's a wait and see sorta deal. Until then, I think the audience that Steam allows these developers to have access to far exceeds the negatives of some games being denied Steam's access for stupid reasons.
And I highly doubt that Steam is the primary income for a lot of these Japanese VNs/games, adult or not adult. Because the Japanese devs don't just put a VN/game on steam and call it a day or get denied and cry in a corner. Japanese devs first release their games, sometimes months to years before in Asian based stores like DLSite (also has a English version). And if the game becomes a success there, they might translate it to English and then try to put it onto Steam. I know this because I yar a ton of hentai games that are either machine translated or fan translated that aren't available on steam. But 6 months to a few years later, I do see some of these games come to Steam with proper translation.
Imo that Stronghold is still there in the Asian market. The main thing Steam does is allow developers like illusion that have been Japanese only to finally bring their games to the west due to it's large audience and that's why I like them for it. Because before Steam, illusion was never going to commit because they have no idea how it would sell in the west. But after steam, they slowly started putting games which has had quite a lot of success. So, sure it has it's downsides but imo they are minor and I wouldn't trade it for the sketchy experience of trying to buy lewd games prior to Steam.
But to each their own.
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