It's a nice feature for those more insulting purchases of your's you just don't want associated with your life in any way any more. However, I think a bigger and better change should be the ability to trade those games to some other Steam user if you so desire. The day digital games can be "given" to someone else is the day digital distribution finally acknowledges that we "own" the games the moment we "buy" them. (Heck, most of the time the "I agree" text when I purchase things doesn't even load up the EULA, so I end up agreeing to literally nothing and then installing it.)
http://steamed.kotaku.com/steam-adds-opt...1746244303
Interesting. Apparently this isn't a real total removal, though -- you may be able to get these "permanently" removed games put back in your library, if you search their help pages after removing something; saw some stuff on Neogaf about that. So I guess if that is accurate this is more of a more complete 'hide games you don't want to see in your list' feature?
Regardless, it's just a stand-in for what they really need, some kind of sellback or used-game-key-sales function. And yeah, we don't have real ownership of digital games until something like that exists. European governments have been putting some pressure on game companies on this, once in a while, but here in the US it's probably hopeless, the US government sadly listens to corporations over users for issues like this. But let's hope something happens eventually. It could.