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You'd need to find a way (or Steam would) to fake a display on the host for it to work.
EDIT: Maybe ZoneScreen could work? http://www.zoneos.com/zonescreen.htm
My main use for the streaming would be to continue playing games on a laptop if my SO wants to watch some TV on the big screen or to play on the laptop while lying in the garden. Having the TV to run would be quite the waste of resources (and not very good for a Plasma TV).
I hope they find a solution that is integrated into Steam. Otherwise it is quite useless for me. :(
If you've got a DVI/VGA output&input, I think it might work the way you expected the HDMI to work as then it just detects that it's plugged in. This is based on my experience with hooking my desktop to my TV via VGA
If not, maybe faking a monitor on your card's VGA output using some resistors would work. Fake a monitor, set it to clone your actual output and hopefully it'll work. I've never done it myself, but dummy VGA plugs are very simple to make and worth a shot (you need like 3 resistors, it may even work with a single one). I'm not sure what you can set in terms of resolution and such with a dummy plug.
http://rumorscity.com/2013/12/06/how-to-create-dummy-plugs-for-your-graphics-cards/