Valve Backed PC to Appear at CES 2013

I'll wait and see what really happens with this, but as a concept, I'm very definitely interested, and in a couple of evolutions I could see myself parking the gaming PC if this takes off as a platform....
 
Could it be that Steam would launch some sort of cloud gaming? Other than that, this... box is way to small to run any modern or future game at a nice frame rate.
 
So when the "Steam Box" launches what happens when a new game becomes available that is too demanding for the "Steam Box" hardware? Will Valve sell you a crippled version cut down for the box limited to 720p or will they not sell you the game if you have a "Steam Box"?
 
I thought the Steam OS was a Linux Distro as such?
Yes, but they have said it's going to be very limited/strict on what you are able to do, like only be able to view Big Picture mode, like a console, but because it's a PC, and if they have 1tb of space in there, I would love to split it in half and use a dual boot to make it a portable PC for when im away, a media centre, and more.
 
Valve have very little to actually do with this device apart from some financial backing, this is one of many devices from different companies. I suspect we'll see a real 'SteamBox' with Valve branding at some point as they patented that modular controller.
 
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