I disagree with this assessment. Steam prices have gone up but Steam does not have real competition yet. If there were real competition the market forces would tend to drive the prices down, all other things being equal.
To me this is really an odd thing to argue against. It is not exactly a new or controversial revelation that (real) competition is always good for the consumer and monopolies behave badly. I do not see any ways in which Steam is a different enough animal to be immune to this.
And I don't understand what you're talking about when talking about user experience. Steam constantly upgrades. Every year they distance themselves further and further. And it's not because Valve is worried about today's flavor of the week (GFWL, then Origin, then uPlay).
It seems like every six months or so we'll get Steamworks, Steam Workshop, Marketplace, Community Guides, etc. It's astounding how the service continues to evolve.
Meanwhile, it the competition's camp, we get absolutely zero innovation. Maybe exclusives meant to force you to the service, cause, well, that's the only way they can get customers using it.
GFWL showed what strong competition does. It allows developers to choose shitty alternatives that are inferior in every single way possible (for the end user), but are chosen for completely non-game related reasons.
And why doesn't Steam rest on its laurels even though the competition totally sucks (yet will hang around by obtaining exclusives), because they realize nothing is guaranteed to them. And if you want to keep the PC an attractive platform, you need to have a user experience that doesn't reside in the keyboard gaming ghetto.
You seem to be talking about both things here. I don't agree with you on the pricing angle (since a stronger uPlay or Origin IMO will result in higher prices), and I certainly don't agree with the other angle. Valve is about building the PC platform. The rest of these are just soul suckers who do the bare minimum as they mine the territory for whatever profits they can strip mine from it. I for one would welcome some real competition, just tell me who it's going to come from. Because nobody else seems remotely interested in the PC platform. Just what they can get from it.