Nope. They sell Steam keys only. They used to have their own store/DRM-system, but that was a long time ago, and the "direct download" on their store is misleading. Nothing to do with other stores being competition; they also have games available on Apple's stores (iOS/Mac).

No they didn't. Also, whether an OS has any roots in open-source software really has absolutely nothing whatsoever to do with a game company supporting DRM-free or not. Or vice versa for that matter...Windows is heavily DRMed, yet a bunch of developers sell DRM-free Windows games on GOG (and elsewhere). Not to mention, Feral is hardly the only game publisher that's anti-DRM-free.

It's kinda weird they state "Direct Download" on the store but is only a Steam key. It's a direct download but you also must have a Steam account and use Steam client to download the game?
That seems the more direct way to download a game, glad I wasn't using the internet before 2020 to be able to know what "Direct Download" means in ancient times.

Yes, a very odd definition of "direct". More like "indirect download". Although I think they get a higher percentage if you buy through their site instead of on Steam. Or at least that used to be the case.