Do people forget that games used to require you to have the CD-ROM in the drive before they would run? Even though most of the time the entire game was installed on your hard drive? It was an anti-piracy measure, but incredibly annoying. Even for games I owned, I would find patched no cd exes to avoid it.
Before I figured that out, if you lost or damaged your CD, you were just screwed. Buy the game again. My dad had a lot of character flaws, but at least when I was a kid he would take the time to call game companies and get a new CD for a few dollars if the disk stopped working.
Using Steam is incredibly more useful than what came before. Almost every game I owned in the era before Steam is just plain lost. There's only one set of games I still have easy access to -- Half Life, because you could register your CD key in Steam. I have a bin full of old game CDs, and I'm sure none of them work. But any game I've bought through Steam, in the last 20 years, I can click to download and play right now.
Add on to that that, no, lots of games did not actually work well out of the box, and needed updates to work. And you had to hunt down those updates. And a lot of those update sites do not exist anymore. Any game I install from Steam is the latest version of the game, and will auto-update if there's a new one.