Another idea that came to me last night after a few drinks and much discussion with friends, if SteamOS tanks, why not make a dedicated front end for Windows? I'd rather see Steam go in the direction of linux because developers need to get themselves away from DirectX as OpenGL is much more efficent. However, if SteamOS does tank, having a dedicated frontend like XBMC would be a great runner up. I understand that everyone fears that Microsoft is going to lock it down to Windows approved apps. However, you know that someone is going to "Jailbreak" it and that is where this can be really good. In fact, I know this can be good because my main computer is a mid high-end PC dedicated to media and gaming. I use XBMC and Windows Media Center (only for Netflix mind you) and have the Windows 7 shell bipassed. Steam runs in the background but all games are launched within the XBMC gui and works very similarly to Big Picture with the media features desired. However, it took a good 2 or 3 weeks to get everything setup properly and running without hiccups. Having a dedicated piece of software that disables everything about Windows 8 Valve hates while bringing an easy to install and use interface that's dedicated to games and other multimedia would be killer. Hell, they could even write a script to install a SteamOS boot animation over the Windows 8 one. That's basically what I ended up doing.
BTW, anyone who thinks this cannot compete with consoles is wrong and my current system is proof of this. One of my good buddies who I game with on a regular basis loves my media box and actually prefers it over his 360. Sure he can't play Halo Wars, but he can play CoD with an Xbox controller, it looks better, and he can switch over to keyboard and mouse when playing Quake 3. He ended up purchasing nearly the same hardware specs and case, it ended up replacing his 360 in the living room (it's still around but doesn't get turned on much
). His wife loves it as she thinks it's easier to navigate.
The point I am trying to make here is if Valve gets their shit together, whether it is Linux or a Windows front-end replacement, this will be a complete game changer in the market. My feeling is that this will be quite successful even if SteamOS becomes a dedicated stream box ("play your Steam games from your personal cloud").