It may not be an instant hit, or even a hit at all, but I still think its a move they have to make.
I see this as really similar to the Windows tablets. Microsoft didn't build a tablet because they had fantastic vision and thought they could do something really special to meet an unmet marketplace need. They did it because something (market research, trends, sales data, whatever those marketing people use) said "This is the next marketplace. Its app stores, in-app purchases, and locked-in ecosystems on portable devices. This is where we need to have a presence to succeed in the future". So they forced the tablet OS on everyone. Everyone complained that windows was fine the way it was - why did they mess with it? Because its not about whats working right now, its about whats going to work in the future. Of course, theres a big difference between a parallel product allowed to succeed or fail of its own right and forcing a product as the only option in an attempt to boost market share. I guess we will have to see which path Valve takes.
Sort of. Remember to think lowest common denominator here. Yes, you can 'easily' attach a PC to the TV via HDMI, but I would say more people don't know that than do. On top of that, I think there are a lot of 10 year old Xbox gamers that, if they dragged their PC out into the living room to hook up to the TV, would be told by their fathers to put it back and quit cluttering up the house. My age and grumpiness are showing