Steam was an absolute NIGHTMARE when it first came out and for a few years after that.
I remember reading a lot of complaints about it.
I also remember disliking Steam quite a lot when it came out, mostly because i found it pointless and unnecessary at first, but I must say it never gave me technical problems of any kind.
I even bought HL2 and activated it in minutes on the launch day.
Then again, I already had a 10 Mbit/s optic fiber broadband when a lot people I used to know had barely a 56K/ISDN, so I guess that's what spared me a lot of problems (and it's also a reason for a lot of people to remember it probably as a more shitty service than it actually was).
Interestingly enough, I virtually ignored the service for several years (beside using it for HL2 and CS) until I preordered the Orange Boxe. From that moment on, I started a purchase frenzy.
EDIT: it's also worth noting that coming from HL1 and the terrible SIERRA (IN)UTILITIES tied with it, having HL2 tied to Steam didn't look too appealing but it didn't sound so terrible, either.