Hammerfall: Limited activation is indeed a terrible idea and NOBODY should ever defend that and to be honest most DRM is pretty nasty and people should be up in arms about it. But to lump Steam which does many things to benefit consumers while still being a form of DRM with other forms of DRM is just not fair in my eyes.
As far as video games
DRM goes TODAY (not one or two year ago), Steam doesn't really have that much advantage over the other. Most (of course "most" exclude Ubi-drm) games's DRM today have unlimited activation or at least revocation tools.
Of course Steam has the auto-patching and "community-stuff" for those who like that sort of thing but on the other side the others DRM usually don't require you to install a client, use regional restriction or link all your games to a single account.
Hammerfall: It seems like there is just no comprimising until anti-DRMers get EXACTLY what they want even if that means playing only GOGs or a game that sucks and has no DRM just to defend their princables.
Nothing better that some good over-generalization to improve the discussion. Lot's of "anti-DRM" are ready to make compromise, heck less than a week ago I bought Alpha Protocol because I decided to trust Sega when they say they will remove the DRM via a patch X months from now and I would buy Vegas if I have the same announcement from Bethesda.
If all editors were simply releasing patch removing the DRM some month after release date I wouldn't mind DRM that much, and I know a good number of anti-DRM who would feel the same, heck I would even accept limited activation DRM if I was sure it was only temporary.