IMHO the proof is in the pudding. What was the last first party title that Valve released? Left4Dead 2? It can't take that many people to make hats or ignore the numerous longstanding issues on Steam. It's not like they are providing tech support or policing the marketplace. What have all of those people accomplished in the last decade?
If there is still a games division in Valve it is exceedingly dysfunctional.
If there is still a games division in Valve it is exceedingly dysfunctional.