[mandelbulb]

The issue at hand is that Steam removed something from the users library. Usually people consider anything on his computer to be his property, no matter at what cost it was purchased. While I don't know whether that was as claimed the first instance of content removal or whether under the terms of service any content is only leased it is certainly a wake up call. It is especially concerning if you bought your games for a very similar price as at a store.

So, in short, the issue is that Steam apparently has the right to remove content from their clients' libraries.

[Qualman]

If you were Valve, what would you do? Without the servers, the game is completely useless, and they probably recognized that fact. Being that this is the first time in 9+ years that they have done this, and only in this particular circumstance where--beyond their control--a game is rendered disabled, I believe there is not much reason to fear them removing your games at random.

[Bjartr]

I'm confused, does the change remove the game's listing from Steam when not installed, remove only the listing if it is installed, or silently uninstall it if it is installed?

The first is reasonable, the second is iffy and would more likely be a technical limitation than a explicit choice on Valve's part, the third scenario is the problematic one.