The thing that bothers me about this is the fact that if you want a patch, you have to use this system to do it. I don't see what was so flawed with just finding a server online and downloading the file to your hard drive. This way you can:
A)Know where the patch is and controll where it goes on your harddrive.
B)Can backup the patch on a CDROM or other partition if you loose the internet somehow or have to reformat and don't want to bother with installing more software just to get your game up and running with the most recent version.
If Steam saves a copy of the file somewhere that you can move and backup independently of this system, that's cool, but if not, I think this is a very very bad thing. I do not like the idea of being forced to use anything. Like Valve is saying. "Hey guys! this program we made is so cool, we think you will love it, so we'll shove it down your throat simply because we are Valve and we CAN!"