It still leaves me cold as an alternative because your copies of the games are still linked to Steam and so far this pseudo-backup functionality is clearly less complete
No, it is a complete backup.
If you count on Steam existing forever you may as well not backup your games since you believe you will be able to grab them from their library anyway.
If you store your games but then you lack the means to play them your backup is not a real backup. Therefore if your backup strategy does not include a way to operate without the assistance of the Steam ecosystem
it is not a full solution at all. Steam's availability is not granted.
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