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We'll just have to hope that Valve bundles this feature in whenever they get around to extending the privacy settings on Steam, because they are currently a bit lacking.
Yes, this was my experience as well, unfortunately. Bots will scrape your inventory and then send their randomized accounts to spam you with requests, etc. As soon as I set my Inventory to "Friends Only" the requests suddenly ceased.
Basically, I'm forced to choose between trading and being spammed, or not trading at all, and having a large portion of my inventory (which could really benefit other Steam users looking to earn Badges) hidden away forever. Feels bad...
Thanks!
Yes, this is a pretty important addition, considering the current hellscape that is the trading sphere.
Either: Better privacy or the current botting and scamming landscape needs to change; disappear (basically the elimination of the need to require this).