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Steam can control your games & access to them fairly easily. It is a DRM afterall.
There are no rental services on Steam, let alone for movies. A few indi movies have been sold on Steam, but that is about it (maybe on major one?).
No, if you refund a game, it will only vanish from your library. The files are left on your computer. Same for free weekends, the files are left so you don't have to re-download them, if you choose to re-purchase the game.
Steam has less control then you think (by design) and it may include some DRM, but it is up to the developer if they wish to use it. Steam was intended as a digital distrabution system to keeps games updated, it just happend to evolve into it's current state.
Developers don't want a rental system. Why rent out a game for $5, when someone is willing to buy it for more then that? There has never been a rental model for PC games, for good reason. It is also why the used PC market dried up realy quick.
And there are some movies up for "Rental Periods" on Steam.
$3.99 is a 48-hour rental.
However, I agree that a full download for a rental seems a bit off. If this were to work they'd probably have to impliment a game streaming service similar to Playstation Now.
Yes, there are.
I'm sure there are more, I just clicked a few things on the first page of video results.
If individual developers don't want rentals, then - just as with movies already! - they don't have to offer them. I don't think anyone's suggesting that every game on Steam be forced to offer this particular business model. It is just as you say, Spawn: it's up to developers if they wish to use it.
If someone cannot afford to buy a game at said price, they can always wait for sales
Gaming is a luxury hobby
Every hobby is a luxury hobby.
moreso gaming is not a human right
Still a nice feature