Well, shit. There goes Steam doing something totally reasonable again.
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No, not really. Valve was sued and (ironically) the arbitrator decided against the validity of the forced arbitration and let the lawsuit happen. If they could still get away with forced arbitration, they wouldn't have made this change.
Well, shit. A court ruling that isn’t total garbage.
Source?
Im not a lawyer but the only thing I can read there is that Valve were denied arbitration.
Right, meaning that it's pointless and costly for them to have a terms of service that directs people to arbitration, hence this change to their terms of service.