Published at LXer:

Now, I’m not opposed to some healthy competition. Quite the contrary. But, in this case, I’m concerned. We don’t need two software stores. We need one that is highly successful and pulls in large-enough sales volumes to attract developers and publishers to the platform. Currently, the Ubuntu Software Center is still in its early stages. It’s growing and improving, but is not yet large enough (in terms of individuals actively using and purchasing software) to make it truly enticing for publishers to invest the resources needed to port their wares to Linux. My chief concern is that the arrival of Steam will simply serve to splinter the already small (relatively) user base of “people on Linux who buy software through a digital store." I would prefer to see Valve release games, starting with Left 4 Dead 2, through the Ubuntu Software Center. That would help bolster an existing effort to build a Linux software store while still giving Valve access to a new base of users.

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Mr. Lunduke fails totally to see that Steam isn't a simple online store, like Ubuntu's Software Center. It also is a social network.
He also fails to see that Steam only initially will be released for Ubuntu only:From Valve's bolg about their Linux efforts: http://blogs.valvesoftware.com/linux/steamd-penguins/
I doubt that it will take a long time until we can see Steam running on Fedora, Arch or Slackware.

Using the Ubuntu Software Center for selling Steam games will only benefit Canonical and Ubuntu's users (and in fact cut down the sales for Valve), selling Steam games via Steam will benefit any distro and their users.
I wonder why he also doesn't demand that Desura should be merged with the Software center, they are also competition.

My conclusion was not that Steam on Linux would harm gaming on Linux, just that it might hurt Canonical's bottom line.

I would say that Steam would greatly HELP gaming on Linux. I care not for *buntu or Canonical.