This is genius. All you need now is a micro box running windows with appropriate video card that you can stick in the corner next to your router and never have to look at again. Assuming the streaming and UX works half as well as they're playing at, they've just managed to commoditize hardware compatibility.
I don't think the importance of this can be understated.
You could do this already for years with Apple TV and Airplay mirror. The real problem is that of controls, mouse and keyboard don't match well with couch
The difference being that i can see Steam releasing the applications to make this work everywhere, while Apple has traditionally been hostile to this kind of interoperability.
It's true that Apple is hostile (= doesn't release spec, but doesn't actively make the protocol hard to reverse-engineer either, eg: the DRM stuff is limited to DRM content and not part of the protocol proper), but the protocol has been reverse engineered and there are many implementations of AirPlay nowadays.
What is the precedence on which you base your belief that, whatever protocol Valve has come up with to replicate the video stream, it will be open? I'm not that much into gaming, but Steam is a closed-source software that includes mandatory DRM for the games, it doesn't really set a precedent of openness and interoperability.
Couple of reasons. First off, Steam is the only DRM I can think of that actually adds value and makes my life easier instead of the reverse.
Second, keep in mind that they've already announced streaming inside the LAN. Having mobile apps would be a natural extension of that. (Note I didn't say that it would be open, I said they will probably release mobile apps).
That streaming is also completely not a threat to their system.
I'm not fully following you: what should these mobile apps allow you to do? Stream the video of a games running on your phone to the steambox to get to the TV?
My living room is perfect use case for this. Has an older PC just for simple games. Now it could stream my entire Windows/Steam library of games, powered by the more beefy hardware in my home office rig.
As you say, if the streaming feature works well, this is a huge win. At the very least, it should save me from running 60+ feet of HDMI/USB cables which was my original plan.
I don't think the importance of this can be understated.