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All the stuff Steam collects about you can be viewed here, including your forum history, all your posts, all your chat logs and so on.
I'm pretty sure he meant delete it from chat window not from steam server history..
I wouldn't mind an option like that to remove the excess of messages and images from my chat for performance reasons.
You know ... like it was BEFORE this update mere few hours ago and that worked fine for years. Chat history was safely recorded on the servers but only recent fragments of that history were visible to you on the chat window.