Utter nonsense. Have you never played an abandonware game from the late 80s and early 90s? "Enter the first letter of the third word on page 14 of the manual"? I used to get pirated Amiga 500 floppies with the copy protection stripped out and a little boot animation from the pirates inserted.
Valve introduced Steam to the PC gaming world... but then again, it's their product. And when all is said and done, Steam has been a significant net benefit.