alt Hacker NewsPrior to Steam there was StarForce and other copy protection messing up your OS and DVD drives, and plenty of stuff needed online activation as well. Of the last few physical games I bought, none work anymore, Bioshock couldn't be installed due to lack of patch servers last time I tried and Arkham Asylum failed due to GFWL being dead. Even when everything worked, you often had to manually go hunt for patches, sometimes multiple that needed to be installed in the right order, and that might not even be compatible with the localized version of the game you had.
Still sucks that used games died and the forced game upgrades that come with Steam have their issues too, but PC gaming was a horrible mess before Steam cleaned that up. Heck, I'd rather rebuy a game on Steam than find out what those vintage DVD copy protection does to a modern Windows. Most PCs don't even have a DVD drive anymore anyway.
There were definitely issues, but I think that some of those basically extend from Steam and the way it worked. GFWL was Microsoft's competition to Steam, so it just copied Steam (~3 years after a Steam came out) and worked similarly to the way other physical releases worked after Steam became popular.
It's true that some of the heavy DRM was an issue back then, but I'm not convinced that's guaranteed to be less of an issue going forward. Steam probably won't live forever, and there are tons of titles on Steam that use Steam DRM, third party DRM, or rely on servers that will kill the game eventually. Just because the lifecycle is longer now doesn't make it less of a mistake than it was previously.
My biggest complaint, though, is that the ownership terms simply got shittier with Steam. Many of those old games, even from big, "evil" publishers like EA, explicitly allow license transfers in their EULAs. Steam explicitly forbids transfers.