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Were they to do so, people's accounts could be compromised and everything erased.
Even getting rid of an account takes a 30 day wait.
Right click game in list > manage > hide.
No method is "permanent" because what happens is a lot of people who want to permanently remove a game change their mind, so they don't do it anymore. it's all just hiding at it one way or the other.
Never tried it... I want to keep my bought games.
There's a reason why this is so.
People in the past used to bang on about wanting the facility to permanently remove games. Guess what happened? They changed their mind.
And Valve had to spend time pissing around trying to find another key and reinstate the game and so on.
In short it's not worth them messing work up for this, so your choice basically is just to really hide it. There's also a legal question but we won't go into that.
https://imgur.com/gallery/w29Tp4b
At any point you can ask Steam to restore the game you asked them to remove from your library.
So why and how did I just do it with an absolute ton of garbage 'mmo' games? (Support => games, software, etc=>type in game name=>Permanently remove from account, click yes - May also include other bundled games, dlc's, etc)
If it does, restarting Steam or the computer usually fixes that.