cogadh: The Steam backup is only useless if ...
Gersen: No, it's also useless if you are looking for a way to do a real backup which is not dependant from Steam and it's good will or a working Internet connection to run.
That's the reason why I backup my GoG games (and the few DRM-free Impulse one) so that I have copy that will work in x/y years, no matter what happens to the shop where I bought them.
You are not dependent on Steam's "good will", Steam is dependent on our money, so if we paid for the service, they will provide it. It is business relationship, plain and simple; good will never even enters into the picture. In the nearly 6 years that Steam has been around and I've been using it, it has never...
NEVER... failed me, so I have absolutely no reason to think it ever will at this point. Besides, a game being tied to Steam is really no different than a game being tied to a copy protected physical piece of media. Sure, you can create a backup of physical media, but you can't really use it without still having the original, just like I can't really use my Steam backups without Steam. I fail to see why this is really a problem for some people.
As for the internet connection thing, I hate to be callous, but that is really your responsibility, not Valve or Steam's. If you've got a crappy connection, do something about it. If you can't, well, then you should have thought about that before you chose to use Steam (or like Sielle said, take advantage of offline mode). We are talking about gaming here, its not like have to or need to do it, it is a luxury. If you do not have the means or ability to take advantage of that particular luxury, do something else instead.
As has been stated by Valve, if Steam ever went under, they would provide the means to run the games without Steam, not that I think we really have to worry about that happening anytime soon. Steam is to digital game distribution what iTunes is to digital music distribution... the biggest there is, showing no signs of failing, only continual growth. I'm sure that growth will taper off at some point, but the fact is, right now Steam is too huge and too stable to collapse anytime soon and even if it were to collapse, we really have nothing to worry about (see bansama's post above for more on that).