1. believe it is against principle to be forced to activate a single player game online

Interesting principal. I won't say anything else, because if you really hold that idea dear to your heart I won't try to dissuade you from it, but be prepared for more and more products to require authentication. I think it is probably the future for a lot of software... is it really so inconvenient?

2. live outside the US where internet connections are not as readily available.

Those that have no connection to the internet but still want HL2 (for single player) will be inconvenienced... They will have to activate their product once online (for SP, only one activation is required). This could be a pretty big hassel, but I really don't see it effecting many people. Besides, if you note the system requirements for HL2, one of them is "internet connection"...

3. just simply don't want it. (yes, very valid reason)

As I said before, it is an interface. It does a few more things than other, more traditional interfaces, but its basic funtion is providing a main menu interface. As I said, I didn't like the HL1 interface, but I was never given a chance to buy a version of HL without it. The same goes for practically any game. If the interface bothers you to the point where you don't want the game... I guess you shouldn't buy it.

Will Steam prevent/deter piracy. I really don't think any of us know the answer to that question.

So they can cut out the middle man? how does that help ME, the consumer, say they do cut out vivendi, say 100% of all money spent goes completely to valve. That means we're going to see cheaper games right? WRONG

The basic Steam version is cheaper and provides the same content, less box and cds. The next highest Steam version is cheaper than the "collecters edition" and provides more game content.

But that's not the point of Steam...

The purpose of Steam:
1) Interface - a global framework that allows features such as buddy tracking patching and anticheat to work across multiple games and mods.
2) Autopatcher - though more hardcore gamers such as those who read BluesNews have no problem finding and downloading patches, to the average gamer they are a souce of confusion and inconvenience. It also allows patches to be deployed more quickly (no need to make custom installers for all the possible setups), with greater organization (no more v1.0->1.1, 1.1->1.5, etc) and with greater frequency (a hotfix can be rolled out alone instead of waiting for the next "big" patch).
3) Online content delivery - Cheaper (yes), faster (yes, though moreso for games Vivendi doesn't have rights to), convenient, portable (all I need is my Steam id and pass to play anywhere online- whatever games I want will download).
4) Integrated anticheat - If you choose to, you can log on to VAC protected servers. Though it doesn't ban immediately, (it waits about a month) it is good about weeding out most cheaters and sacring the rest off.