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That does not prevent anything. Back in the day you could invite literally anyone because it used to be one of the basic profile functions like "Add friend" - it even worked on private profiles.
Just lately Valve changed that so that you can only invite friends and even if they are on full-private mode you can invite them to groups no matter what.
For a start, while Steam is an online service, not everyone wnats to socialize any part of it. That's a valid reason.
Also, some just want to partly socialize. They might want to share certain things with potential players but that's about it, or just personal friends.
In other words, mcuh the same reason as some people like to remain somewhat anonymous in real life.
Why is it any of your business? And no, a lame answer like "curious" doesn't cut it.
The real question is: why do you care?
gathering knowledge forming ideas ..
i am always looking for better ways to think and process whats going on in the world...
but i also like weeding out things that i have no interest in....
and private means i get to choose and have more of my time
used more purposefully.... subjective of course
🌱🌱🌱🌱🌱
Only game-stats are, like how many games you own, which games you own, playtime, etc. The profile itself is not private. (edit: and it wasn't always like this) The reason why, is most likely due to a website, called SteamSpy being able to estimate very accurate sales numbers and interesting statistics (especially for indie-devs) from those game stats. Big publishers hated this.
Friends only is the default for newly created accounts.
SteamSpy required public profiles.