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Steam can automatically change your status to Away. If you do not touch your computer for iirc 5 minutes (you can be either in a game or just Online) your status will update to Away.
Yeah that's pretty much it. And like I said up above, If you wanna play a game but not have your status change to that game, you can go Invisible and your status will not change until you set yourself to a different status.
Honestly I don't know anything about Snooze. The only statuses I've seen on Steam have been: Online, Away, Invisible, and Offline. With the added Do Not Disturb function you can enable at any time. If I had to guess I would say it functions the same as Away does.
Same as Snooze, I don't remember ever seeing Busy as an option on Steam. If it was at one point, it would have operated the same as Do Not Disturb currently does. (disabling all chat notifications)
Yes you got it right. With it being a checkbox you can have Do Not Disturbed enabled while your status is set to any of the other options. Additionally, if you enable Do Not Disturb and you are not Invisible, an icon will appear next to your name indicating you turned on Do Not Disturb. If you're invisible, the feature will still function but the icon will not appear next to your name since you are appearing as offline.
Technically there is also the Offline option which signs you out of friends and chat. And as you could probably guess, you'll appear offline to everyone on your friends list since you're signed out from Friends & Chat. Note that you won't be signed out of Steam as a whole, just the chat functionality.
You're responding to a post from over 4 years ago, what's the point of that? You searched this old post out and wrote a lengthy reply for nothing since the thread is going to get closed for being a necro.