This quote has been taken too far out of context from the original talk, which is worth viewing.
He was saying that piracy can be reduced by making the product easily available. When it was easier to download a pirated version from home than to drive to the store and back and unwrap a physical CD, piracy was easier.
That is not true today. The easiest path is to buy the game digitally through the service on the device and play it directly. Pirating it is more work and harder to do.
So quoting Gabe Newell in support is wrong. Saying it’s a service problem is also wrong when the piracy route takes a lot more work. The goalposts keep moving around (and I’m sure they’ll move more in the replies) but we have to eventually admit that a lot of pirates are pirating because they don’t want to pay for the game. It’s the most obvious fact on this topic but the comments are always full of mental gymnastics pretending the pirates are noble people doing the right thing.