Read the Bethsoft blog, and glad that this whole fiasco is over. That being said...
The blog may have pointed out a few interesting points, but ultimately made me scratch my head even more. If what they state is true, then this system was being "under development" since as early as 2012, with possible legal issues needing up to three years to have been solved out by Valve. While they very much could have tried to establish an understanding and find a working solution with the modding community, they decided to pull a few select modders, made them sign an NDA to know about an "exciting new change" and rolled it out as a surprise for most. Then Gabe Newell had to visit Reddit and conduct a quasi-AMA for damage control, all the while stating as if he did not know what had been planned under the hood and how the community reacted. (Also interesting to note that Robin, you were there asking him questions and Gabe left most of his answers as vague as possible - while he was able to state exactly what drink he got from Starbucks. Quite frankly, I found that a bit insulting).
Also the blog states that they had been with the modding community since 2002, and also that opening up a market is full of problems. So they knew exactly what sort of issues modders would point out in the course of THREE DAYS. Copyright infringement, no protection in case of mod theft. unable to share a common denominator plugin and/or script, etc. Yet they still thought this was a good idea, and proceeded nonetheless.
"While others in the industry went away from it, we pushed more toward it."
That may have been true for over a past decade, but somehow every decision they made with this incident points the other way. At least they decided to listen to the community and shut the program down without further ado, that is respectable from both companies.