I bought a boxed copy of Half Life 2: Episode One and the game installed off the disk. Granted, the whole thing went through Steam, but it wasn't just a link to a Steam installer.
Anyway, I understand some of the hate for Steam now. Haha. Personally, I don't love it, but it is an interesting idea: nearly instantly playable online content that can be paid for. I got Defcom through Steam and it saved me a trip to the store and I got to play it sooner than everyone else. Oh yeah, and I got it for cheaper.
Furthermore, it destroys any possibility of piracy, singleplayer or multiplayer. I know we all may like an occasional free crappy game or two, but I think we all agree that piracy IS hurting the PC gaming industry, and we may keep missing out on big opportunities if the platform can't find a way to stop piracy. I don't have any numbers, but I know piracy in the consoles (How the fuck would you pirate a game on Gamecube?) is incredibly low, while it is very easy to download whole games from websites without paying a nickel.