No, dialup was still common in the early days of Steam, game content was not largely being delivered as downloads yet and discs were still useful because it could not yet be taken for grated that a customer would be always online.
But I’d still rather download a game straight from the developer or publisher without an additional middleman. Privacy aside, the cost of that rent seeking from Steam gets passed along to you.
The elephant in the room is that “data” is not a solution to this in any meaningful way.
It’s easy to use data to recommend products that are similar to the ones you’ve enjoyed. But we don’t need algorithms for that. We don’t even need computers for that. Follow the genres/categories you know you like.
The subtle and mysterious things that are unique to each of us that cause us to like one game but hate another game that’s objectively similar to it, data won’t solve that because we don’t even understand it well.
Another reason recommendation algorithms don’t work well is because they’re designed to maximize profit, not satisfaction.