Virtual economies will have all of the issues inherent with real economies. Theft, gambling, counterfeiting where possible, etc, etc.
I think we ask a lot when we expect Steam to be on top of the entire economy like a hawk -- I'm not saying they shouldn't deal with situations as they arise, but expecting them to be ahead of the game seems an impossible task to me. They can only ever be expected to chase down flagrant issues.
More to the point, the solution to me is one of two things:
a) either these virtual economies shouldn't exist in the first place
or
b) accept they are and will be the wild west since it's impossible to crack down on endless virtual economies [it's hard enough to crack down on real economies.
A bothers me on a philosophical level, since I believe people should be able to make and trade with whatever they want, even alternate currencies [often outlawed in the US].
B seems the only option to me, with companies chasing down violations beyond the pale, where truly illegal things are going on. But even then, again, I don't think any company can stay completely on top of any virtual economy, simply because it's 'too big'.
Th trend of Valve being hands off on unless it hurts them directly, or the internet blows up, is getting old.
Good on them for making the right step but a lawsuit and internet rage shouldn't be the only thing that drives them to action.
See above. I don't think we can expect companies to be entirely proactive when dealing with virtual economies simply due to logistics. Why spend a fortune hunting down and resolving issues if no one seems to care and people are doing things they want to do [gambling, etc.]. There's no real reason to chase down and 'solve' those issues unless there is a big 'stink'. You may think it's immoral to allow gambling, but certainly, that's subjective. I don't see any issue with two adults betting over a coin flip. Yes, it gets foggy when you add children to the mix, but again, that becomes an impossible task - how does a company prevent third parties from allowing digital people to 'trade' when they may or may not be children?