But the worse part is that steam is getting everyone under 20 use to the idea of being watched and probed and to the idea that you only RENT your software now. So when they grow up, use other programs like health care or other personal and serious programs they will not think anything of it.
My understanding of that situation is that people got used to the tracking, achievements, etc. with their consoles and Valve added those things because some people actually wanted it. To date there's no evidence of Valve using anyone's information for anything nefarious, collecting personal information from peoples' computers without their knowledge, etc. that I know of. Believe me, if Valve were doing that someone would be onto them by now with the amount of scrutiny that Steam gets. It is possible to detect that type of thing, you know.
From a business standpoint it would be suicide for Valve to get caught doing something disingenuous with their client, so I really doubt they're doing that or ever will. What could they be doing that would be profitable enough to risk the reputation of their entire platform? While I agree that people don't protect their privacy anywhere close to as well as they should, I really don't think that Steam makes the short list of things people should be concerned about.

I go offline. The launch and the ads are annoying. I go online only when there is a game patch or I am purchasing DLC.
I agree that the speed of the client startup is annoying. You can turn off everything else, though. I never see ads or update news.