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People use steam because it's good service, and a good product.
In fact, they also gave Linux a boost
They also have things like cloud saving
Developers use them because apparently they have some awesome features too for things like multiplayer and such and a great API
As long as you understand the terms of your agreement with Steam as a platform, everything is fine. Physical media for games are outdated anyway, especially with frequent updates, patches, and DLC releases. Regarding older titles that are no longer supported, well, as the saying goes: "If buying isn't owing..."
Chad GOG
This has literally always been the case with Steam, the only difference is that people are told up front now. Things will likely continue to operate exactly the same as it has until now, I doubt Valve wants to disrupt the giant money train they have.
I would be surprised if it even was possible for them to change so that the games are bought. I suspect that would be quite complicated legally.
Here's another reminder to sign this initiative if you live in the EU.