They do provide a good service. There’s no subscription fee. They maintain delisted games so you can download games you bought years ago that are no longer available. Not to mention steam OS and other projects like the steam deck that put pressure on other gaming companies to do better.
This could go up in a cloud of smoke at any point and it likely will as soon as Gabe passes on and the in fighting begins. So this is a “good king” situation and the system itself will not be sustainable long term by any means.
I have read the Subscriber Agreement, most of it is standard legal boilerplate. I don’t see anything about collection of data. Steam is a vehicle for capitalism, no one has claimed otherwise.