Steam for Linux means Linux for Steam

Steam on Linux. That's a thing. It's coming. They have a naively running L4D2 working on Ubuntu using AMD's Linux drivers.

Steam on Linux has been "coming" for a long time. They've had job postings for Linux OpenGL developers for years. The reason why it's actually news now is because a member of the press was aloud to see Steam on Linux.

Valve is also working on a version of Steam designed to be used on a TV. That means UI designed for a lower resolution and to be controlled with something like a console controller (XBox controller is a Windows USB device).  They are going to great efforts to clone an console-like experience.

What we need is a distro of Linux Designed for Steam. Why? Because for most people, Linux is entirely to much effort.

Ubuntu answers most of those problems for day to day computer use.  If all you do is web applications and simple Office-style work, Ubuntu is a great Linux distro.

We need Ubuntu for gaming. We need a Linux distro that uses minimal background CPU and Memory, give games as much of the graphics card as possible, include Linux drivers for gaming level graphics cards, and as little else as possible. No OpenOffice, no ThunderBird, no IDE. Just a web browser, Steam, and an Ubuntu-like app-store to let people add what they'll use. It needs a UI designed for both Keyboard/Mouse and TV/Gamepad.

Valve could build this Linux distribution, and could even help push Nvidia and ATI to better their driver support, but more likely it would have to come out of the Linux comunity and, with Steam support, I can see the Linux community getting behind gaming in a big way if a company as influential as Valve pushed full native support for Linux.

If we had Gamebuntu... SteamBuntu, yeah, lets go with that. If we had SteamBuntu, then HP, Dell, Toshiba, Acer, Asus, or anyone else could build computers like we saw for early HP/Dell netbooks with Ubuntu.  We could see Alienware style gaming grade machines that ship with SteamBuntu instead of Windows. We might even see smaller formfactor systems designed like a modern game console that fit next to your TV.  These systems would ship working with Steam and all the drivers they need.

Valve has said that they are not planning on going into the hardware market any time soon, but they don't have to for there to be a ValveBox.

I not only think this is what should happen, but I think it will happen. Assuming Valve gets Steam on Linux by the end of the year (I know, maybe a bit too hopeful), I think we could see more game studios publish for Linux (we're already seeing that with many indie studios). Within a year or two we will probably see a version of Linux pre-configured with Steam. Assuming Linux For Steam becomes a popular alternative to Windows, we will start to see Dell or HP making gaming grade systems that ship with SteamBuntu (Microsoft will probably pay them to not do this for as long as possible, but that can't last if their is a large enough demand).