... again.
http://store.steampowered.com/news/2372/

Hooray...
"As we roll out these features, we continue to look for new ways make PC games easier to create and better for customers to experience."
... and incidentally, tying them all irrevocably to Steam. My, what a surprise :-(

Wasn't DRM obsolete since its inception?

That sounds absolutely atrocious. :|

Wait, they're "making DRM obsolete" by introducing yet another idea of digital restrictions management?

you know, most threads about steam on here don't seem out of place.. but this one does..

I love the way Valve is advertising features that ultimately, no one really need worry about such as DRM -- it's on Steam, Steam *IS* the DRM -- while they quietly usher in more sinister features, such as those employed by THQ's latest games: Regionally restricted installers which won't activate a game outside of the country it's aimed at. Terrible for those who have no alternative but to import games. (Well, they do have an illegal alternative which Valve is now pushing them into)....

Steam *IS* the DRM
______________________________
I would have to agree.
When are they gonna learn DRM is killing the PC market, i bought GTAIV at christmas and after spending an hour installing rockstars social club and all the online activation nonsense i still couldn't get it to run (been in the cupboard ever since). Used to have similar problems with Steam when it first started.
People who want to pirate games will always find a way to do so.
Adding all this is only detering and frustrating the people that paying for their software and that is whats causing the loss of sales on the PC, not piracy, it's so much easier to buy an xbox360 and play the same thing without all the hassle.

I still don't see how any of this newfangled steamworks stuff is a hassle, let alone Steam.

The only hassle I see is the following example:
Say I want to buy Empire Total War. It uses Steamworks (and possibly the regional activation lockout). It's not sold over Steam in Japan, so all I can do is import it. Say I do that at a costly price get it home and find that I can only install and activate it if I live in the US.
I would have bought a brick. Now tell me, why would I risk that when I could theoretically just obtain a dodgy copy?
And just in case it needs stating. I am violently opposed to piracy and pirates. I'm also violently opposed to publisher that code stupid things like this which inevitably only result in people actually needing to break the law. It's pathetic, no matter how you look at it.
Incidentally, I don't want Empire Total War, I didn't enjoy the demo.

Think of it like smoking a mouth full of cigarettes. It can be done but it is not good for you or very pleasant in the end! ;oP

In the early days there were a lot of glitches with steam, half life 2 had corrupted textures for months.
For a lot of people who don't have access to the internet (my machine upstairs doesn't have internet access as networking and firewalls are a pain in the ass)it's a bit of a hassle.
I don't see What was wrong with the old cd key and disc protection.

They have released very limited info on this, and yet have the steam fanboys falling over themselves to say how good it is... I know I should never read the comments on Kotaku!
I can see this watermarking style being launched to try and avoid P2P piracy (bittorrent), and if it means that steam becomes essentially GOG-like in its distribution (no more internet activation, no more need to have a steam program to monitor your games) then I will be happy with it.
This will be digital only I assume, so the printed DVDs will still be open to be ripped and copied. Considering you can pay cash for those, and leave no trail, that may be an obstacle.

Blah, disapointed!
When I read this thread title I thought that Steam finally decided to drop DRM, at least on some games, but in the end it's just some pretty stupid PR talk they haven't made anything obsolete they just try to promote their own DRM.
Shame on Valve...

Shame on Valve? ? ?
Really! I am shocked, neigh, I am stunned, that amongst these hallowed walls there are still people around who are sheep.
Steam IS DRM !!