Just so I don't muddy the issue further, I should clarify that Steam can validate both the game files and your account for DRM purposes while in "off-line" mode using stored information on the computer instead of connecting to the internet.
So, when I said "Steam validates the game every time you run it. It validates your account every time you run it." I didn't mean it would connect to their servers every time. It just checks the CRC (or whatever the newer one is) of the main executable for changes and checks that the game is valid for the account you are signed in to.
If you order it to "validate game files" it will connect, because that is a more in-depth check, but that is completely optional.
Assuming that (i) that works flawlessly on 99% of all rigs, (ii) is easy to setup, (iii) does not spontaneously turn itself back to default settings, and (iv) does not eventually require you to regain an internet connection to be able to keep the game playing (I saw some guy say it will only stay in "offline mode" for about two weeks before it needs to reconnect), then I'd admit, that that sounds not so bad, and fits the claim of "one-time internet connection for Steam authentication."
But based on the number of folks I've seen post to ask questions, or express complaints about all four of those points, I do not believe that it actually works that way. Had I not had a bad customer support experience with Valve back in about 2003 with them not providing any help to fix a stuck elevator bug in Half Life 2, and telling me it was because of my sys pack or OS or something, then I might be able to trust that they really wanted to provide an truly effective "off-line mode." But based on my past experiences, the numbers of complaints by active Steam users, and my hypothesis about how online exposure to their store is a primary motive in their business model, I don't trust that the Steam Offline stuff is actually what it should be or is implied to be. Call me a cynic, but that is basically why I do not wish to participate in it.
I just have one thing to say:
What happened to CD-Keys?
Mostly ineffectual for DVD copies of the game, and basically useless with digital download versions.
No offense Showler but: what proof do you have to back up that claim? Until I see solid numbers that project the impact of various forms of copyright protection on sales under different experimental market runs, I'm skeptical that any of them do or do not work.
Moreover, Gamersgate, a digitial distribution service for Paradox, etc., uses serial keys. You buy your game, and you get access to a DL app. You download the app and by the time that is done your serial key is generated and visible on your My Games portion of your account page. Now you DL your game (takes an hour or so for me generally depending on the game) and when you fire it up, type in the serial key to activate it. Short of reinstalling the game, you never have to do anything else with the Gamersgate site, or any other validation process. You now have the digitally downloaded version of the game on your machine.
Now unless Gamersgate is actually losing money because piracy (which I doubt given they've been running same as always for years now and have expanded their product line) else, the games they sell are so unpopular that no one cares to pirate them (which I also find very hard to believe) the example of Gamersgate seems to suggest that serial keys work, or are at least sufficient.
Of course the mitigating factor here is: company reputation. According to Brad Wardell, it is the company reputation which accounts for piracy as much or more than anything else. Again, I've seen no proof of that either, but that is what he seems to think.
Paradox, and Gamersgate seem to me to be fairly well liked; I certainly don't see as much negativity on their forums as I see on various game forums about Steam.
So, assuming Paradox is so well liked that they don't suffer piracy, it would also be possible that the serial keys they are using are "not effective," but in this case the effectiveness would be moot anyway.