I was lucky to be in an area that had very early access to DSL, so it wasn't a problem for me. The "always on" features was actually pretty awesome and novel if you had a permanent connection. In general I've been impressed by Steam from the start.
On the other hand, we can see what the success has caused down the line. Now every publisher wants to replicate it with their own proprietary launchers, undoing all of the cleanliness and centralization that made Steam awesome in the first place.
If anything it's now more confusing than ever to keep track of which launcher has which game and which friends had been added where.
I suppose the total Steam hegemony was always going to be a temporary thing.