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Next time move the Steamapps folder to another diectory before you un-install. It will save you time.
Uninstalling steam = uninstalling/removing completely ALL installed games from hard disk.
Don't uninstall steam BEFORE moving steamapps folder to some safe location.
Don't uninstall steam BEFORE moving userdata folder to some safe location.
Steamapp folder keeps your games.
Userdata folder keeps your games' profiles and savegames.
To answer your question - Yes, you have to download all games again.
Some games will keep your progress. Those with Cloud feature will (unless you were not using this feature [bad decision]), and those that store save/profile on system partition.
There is possibility that some games stored savefile/profile in userdata ONLY but didn't use Cloud feature at the same time - progress on those games will be lost.
I tried that and it removed whole Steam folder - everything was removed.
My friend learned that the hard way - he though what you thought, and he ended up downloading 250 + GBs of data.
As I said about saves - they are stored in userdata with is removed upon uninstallation. On top of it SOME games don't use Cloud (very few, but still).
Better safe than sorry.
The simple way to avoid redownloading games and to avoid losing savefiles is to move/copy Steamapps and Userdata folder OUTSIDE steam folder, and then uninstall steam. When you install steam again you can move/copy those 2 folders back where they were and play (keep in mind some games will require cache integrity check, some will download some data). Even if you end up dling some files (small percentage), you will NOT have to download everything
Is there ANY WAY of retrieving my lost data?
The feature exists, it not being used is not Valve's fault.
Additionally, the Steam uninstaller warns you that everything in the Steam folder gets deleted.
While this is correct, there are things that Valve could do. For one, they could encourage publishers to use Steam cloud.
Also, Steamcloud itself is not particularly good. Many games don't even understand it, and store both saves and settings -- Valve could, for example, make a distinction between the two, and only download settings for the box that they game from, while saves would be shared between all boxes.
From a user perspective, accessing saves for a week or two back would sometimes be a very welcome feature as well.
Basically, Valve could make Steamcloud much more attractive, both technical and political.
http://steamcommunity.com/discussions/forum/1/224446614465076931/?ctp=2#c1319962417042006730
Thanks for the notification man. :)