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It seems like its actually a giant fuck you to anyone who doesn't live in King County, Washington State, USA.
Everything has to be done in King County Courts in Washington State.
That's some big travel costs for people all over the world.
Not a lawyer, but something makes me doubt all the courts around the world would hold to this.
You've got to be absolutely loaded to sue a company as big as valve anyways. If you have enough money to sue valve then you easily have enough money to retain a local lawyer for it. Nobody is going to be taking an international corporation to small claims court.
That requirement mainly strikes me as a way for them to avoid having people judge shopping for some texan christofacist judge who would immediately rule against valve because they see videogames as the work of satan or something. Locking you into using a specific court in a fairly liberal state avoids that issue. With the current state of the US judicial system I don't blame them for wanting to know that they'll have a sane judge.