Remember this thing?

It had integration in Half-Life 2 and a few other games.
People are always looking for ways to re-invent the wheel because "why does it have to be like this?" is always a valid question with computing.
The dream of what a computer should be has nothing to do with a mouse and keyboard, and yet the fact of the matter is that no one has invented a better GUI or Desktop environment other than your typical "Finder", "Windows Explorer", GNOME or whatever. Even touch screen OS's don't really stray from this, and in many ways aren't as capable.
As long as this is the case, PC gaming is just gonna be people sitting down to use a mouse and keyboard to interact with things.
I understand Valve's propensity to use their franchises in a way to innovate, but the ironic thing is that Half-Life 1 is a good FPS developed from the sensibility of innovating on Quake's software. To a developer nerd its this innovative, interesting piece of technical work to create new ways of doing things that Quake wasn't able to do. But to the end user, Half-Life 1 was just a really solid first person shooter you could play over and over. Doom/Quake and Duke Nukem/Build engine games didn't have the cinematic, roller coaster ride theme park quality that Half-Life 1 had. It remains a fun campaign even with its limitations. The core of it though is that it seems like almost every modern singleplayer "campaign" game, or linear action game has some Half-Life 1 or 2 in it somewhere in how its levels are designed, stories are told, and loading screens are linked together.
I strongly believe that valve games depend on this general axiom that the innovation is almost always software, hampered by how slow hardware is, and mired in peripheral side quests into any kind of haptic feedback, or virtual reality gadget that can be conjured up to make the game more than just a shooter.
Valve caring about mods, developing things like the workshop, having community made hats or whatever. That layer is software. Stuff like the gravity gun, the portal gun, or say, the idea of bugs coming out of the sand but not the concrete. Thats all software. Sure it takes hardware to make it happen, but people remember the scripting, the gameplay, and the presentation more than anything.
Somewhere in the process of developing the first Half-Life, there became a defacto system of developing game concepts where the player's minute to minute experience became the priority, and every "cool" idea or narrative concept was subject to change based on that. Half-Life levels may have similarities with each other based on a sense of down time vs action, or puzzles vs fight arenas but there's a constant theme that they're trying to introduce new or fresh takes on things.
Ironically, Half-Life 1 also has Xen which is emblematic of Valve's inability to nail the climax, after getting caught up in a technical concept that is too ahead of its time.
I'm not really arguing against Valve or the amount of time its taken for them to do certain things because what company would know better about the limitations of the state of things? Their whole ideal was "raising the bar". If they think the product would be boring without some kind of whacky concept to drive their interest in making levels and sequences who am I to judge? I just feel like they need to throw some more games to FPS players, their bread and butter customers. Counter-Strike as a competitive multiplayer game made by other people doesn't cover the ground they've already established.
The Steam side of valve will create stuff like Greenlight, or develop an economy and marketplace to streamline the development and publishing of things with the community having a level of involvement. Valve and Gaben act the complete opposite way. Gaben doesn't want to talk about whats coming out, because ultimately its already been decided, and everything after that decision is an endeavor to make it actually happen. Theres no reason to spoil it or drop an "ELDER SCROLLS VI COMING SOON" teaser.
I just hope that we don't all get caught up on technology so much that the actual game part of valve games are not being made.