The fact that their Steamboxes ran on Linux is one of the big reasons why they failed, same with Stadia. If they’re counting on Linux gaming to help power their way into cloud gaming, they are doomed. Doubly so because they seem unlikely to even go to the somewhat muted lengths Google went to get people to port their games.
But yes, I agree that Steam has massive scale, but like Nvidia they have a vested interest in keeping publishers happy. Would they mount a lawsuit to force companies to let people play their Steam library in the cloud? Hard to say. I guess I think it’s marginally more likely than Nvidia because Gabe is a purist a bit like Tim Sweeney.