You guys are confusing the concept of competition. There’s more than 1 type, and while in some regards, @Brad_Grenz and @Nesrie are both right, they’re talking about different types of competition.
First, the competition that is happening in regards to the EGS store, is Epic competing with Steam and other store fronts for the rights to sell certain products. That is supplier competition, and only benefits the developers of games, as they are the ones that get the choice, and get to make the best decision for their product.
What we end users normally think of with competition is when we have a choice. It can be a choice between different but similar products (Coke or Pepsi) or it can be a choice of where to buy our favorite products (Wal-mart, Target, Amazon). This is consumer competition, and generally benefits the end user as they are now the ones getting the choice, and can usually price compare/shop.
So, yes, in both cases there is competition happening, but on very different levels.
I think what most consumers dissaprove of is when the competition is at the supplier level, instead of the consumer level. This gives the seller more leverage, and the consumer does not benefit.
If you could imagine a scenario where Wal-mart decides to throw billions of dollars at Coca Cola (or whatever your fav brand is), to become the exclusive seller, I think more of you would understand the disgust many people are having towards EGS right now. Maybe you don’t like Wal-mart, or find their stores less appealing to shop in, or less convenient, or whatever. Yet, if you want your favorite soda, you would now be forced to go there to get it. And guess what? Wal-mart would be much less likely to offer sales on Coke because they are the only ones that sell it. In this case, exclusivity does not benefit the end user at all.
This is the scenario that should be being discussed here with EGS. Let’s not confuse it with supplier level competition.