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If you want to give your account to someone after your death, you need to write down login credentials and information required for account recovery to be handed over to someone after your death. Who ever receives the account should never disclose that they received it as Steam Support will lock the account if they suspect current user is not the creator. It's probably best that instead of using your account, they should for a Steam Family with it and share your games to their account instead so no suspicious activity can be detected on your account.
Why wouldn't it be?
McDonalds and Coca cola have been around for more than a century
With Steam it isn't different. Heck, the games my kids (one is an adult) mainly play are stuff I don't have. People will always want new stuff.
Also, it's quite a leap to think that when you die in 40-50 years (assuming one is around their 40s), your kids still want to play games you have that are 40-50+ years old. Or that they don't already have them themselves.
Gaming has largely hit the ceiling
Was founded in 1940 (though it did not become Hamburger restaurant until 1948). So it's been around "only" 85 years
Better pick would have been IBM that was originally founded 1911 by merger of 4 different companies though it adopted IBM branding 13 years later in 1924 (founding name being Computing-Tabulating-Recording Company (CTR)).
How? Many games from 10 years ago look like they came yesterday
And then you have the graphics snobs complaining that games from 4-5 years ago look "outdated" or "like a PS2 game" because they're not using the absolute latest bells & whistles from Nvidia.
Spoiled kids and trolls
The original (non-remastered) BioShocks, metro 2033 and last light redux heck Even half life 2 still look very good in some regards
The main problem is the death of art styles which allowed for games to look good with moderate polycounts
Now everything is ultra realistic slop with a bunch of unnecessary details added (like red dead redemption's realistic horse ball sack)
The same way they already do. As long as a loved one provides you with the information required to access and prove ownership of their account after their death, Valve won't deny you access. Case in point: I took ownership of my father's account when he died several years ago. Steam support helped recover the account, too, because I had the required information needed from my father.
They won't. For starters passing your account on is a violation of the tos and second the laws of the UK aren't steam's fault. They have to do what the law says or they won't be able to do business in that country.
I mean how would they be able to figure out?