Louis XXIV
Le Roi Soleil
I don't think it is legal, (to change the user agreement) if there's no other way to run the application without steam.
It is legal to offer a new agreement as long as you accept the agreement. The question is whether there is a remedy if you refuse to accept. I suspect there was a provision in the original agreement that the terms could be modified and you agreed to it at the time. If that's the case, there's probably no remedy. You still got to license the game up to this point so they could claim they held up their end of the bargain.
Not being a law student or anything like that, I believe, for instance, 2F paragraph 3 is unenforceable by Steam, even if you would have to take them to court to sell or rent a game (you could transfer reproductions without their permission, but it would be illegal unless you transfer it to the person you sold/gave the original to...and I believe it would actually need to be done in that case).
It's been about 2 years since I took a Contracts class (although I am a law student), I'm pretty sure non-transferable license agreements are perfectly valid. To give an example, if you're renting an apartment and the lease says that you can't sublet the apartment, that's enforceable. The unfortunate thing here is that the product is packaged and delivered as if it's actually sold when it isn't. The fact that it's a lump sum fee for a lifetime rental goes even further to look like a sale. But game companies, music companies, etc., are very careful to make sure that it isn't a sale. And rental agreements are perfectly legal.