No, I prefer GamersGate. All the benefits of an online distribution, no idiotic DRM-riddled extra program running in the background all the time and getting in my way.
That seems to be a good alternative, I have to search it. But Steam never get into my way. I can browse the internet inside the game, I can chat with friends. I wish it can record videos and take screenshots too. I am already running background applications like FRAPS or Xfire with games.
Steam has no rootkit, hidden OS hacks, it is merely a gaming catalog application showing me that I played 16 hours of Metro 2033, 18 hours of Just Cause 2 and 71 minutes The Witcher(that's cinematics included, all I can stand.) and help me buy and download games. It is very useful, can backup my saves and settings. I think it extends the life span of games, at least it can do that to PC gaming in long term. Like http://store.steampowered.com/sub/440/.
Again, the online activation and buying the game via steam is the SAME thing. So actually there is no required activation at all. There is only buying the game once for your account.