I can personally attest to the "multiple consoles, racks of games". Easily around a hundred games, six consoles (seven if you include my PC), as well as two handhelds.
I don't buy as many games as I used to. More diverse interests, more limited budget. Still, I collect any I find are good: especially old gems I missed when I was growing up (contributing to the killing on secondhand games).
I like that Valve's admitting this. $50 for a brand-new game I always felt was too much. Generally, I buy for $30 or less if I can (there are exceptions... good 'ol FS2 I got for around $80 on eBay, and it's one of the few that I'd say it was worth every cent).
This could be the first step in the right direction, though I'm rather doubtful anything will come of it.