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Steam has barely any competition. In such situation they want to maximize profits, instead of giving free games and better deals than some minor underdogs.
But I'm sure it might be different if you don't look for mostly indie-ish games or AAA-stuff from about 2-3 years ago like I do.
Don't buy if not on sale. If it is not on sale, wait two weeks, it will be.
As for sales, IMO they're basically the same. Most titles max out at 75% off and only a small select few do 80% or more.
I think it's more that, when Steam started doing these sales, it was rather uncanny to see so many big titles (some which were rather new to the market) have such drastic discounts. Over time, we've become accustomed to it so it no longer seems like a big deal. And the competition from Greenman Gaming and Amazon is directly due to them trying to compete against Steam's sales. If it wasn't fro Steam forcing their hand, I doubt most other digital retailers would ever bother with providing such deep discounts.
I think their answer is probably, "We really don't see any problem."
http://www.gamespot.com/articles/valve-worth-3-billion-report/1100-6365049/
(Old article, but still a valid theory.)