@wkempf:Those who wants a better gaming experience will have pad+mouse+keyboard in living room. It would be interesting to know how big amount of Steam users are using pad for gaming.
I see Steam Box quite a direct competitor to consoles. Steam Box with "Big Picture" functionality makes Steam client console-like. Steam Box with Big Picture enabled, a pad and console games is pretty much a console - with cheap games. I guess that's going to be a default setup.