Steam isn't a Spyware by any definition of the term

I disagree
Spyware Definition ( excerpts taken from webopedia)
*gathers user information through the user's internet connection without his or her knowledge, usually for advertising purposes.
*Spyware applications are typically bundled as a hidden component
*Aside from the questions of ethics and privacy, spyware steals from
the user by using the computer's memory resources and also by eating bandwidth as it sends information back to the spyware's home base via the user's Internet connection.
*they have the ability to monitor keystrokes, scan files on the hard drive, snoop other applications, such as chat programs or word processors, install other spyware programs, read cookies (the potential for abuse is definitely there).
*Licensing agreements that accompany software downloads sometimes
warn the user that a spyware program will be installed along with the
requested software
Also, (from PCMag.com): a description of spyware
"The license agreement that nobody ever reads may actually state that you are installing spyware and explain what it does. For example, it might say that the program performs anonymous profiling, which means that your habits are being recorded, not you individually. Such software is used to create marketing profiles; for example, people who go to Web site "A" often go to site "B" and so on. Spyware may deliver competing products in real time. For example, if you go to a Web page and look for a minivan, an ad for a competitor's vehicle might pop up "
Steam-sounds like spyware to me…