So this is one of the people behind itch.io, which I originally believed had a hands-off policy on the content of games on their service. Given that at least a quarter of games on itch.io are full of adult content (up and including incest and pedophilia both consensual and forced) and many more are of extremely low quality, it's pretty amazing to see this kind of attitude about Steam's new content policy.
Going back to the jurisdiction issues that will come about with Steam's policy, a lot of "malicious, derogatory, discriminating, bullying, harassing, demeaning" games are still unlikely to be allowed on Steam due to hate speech laws or other censorship-related statutes from one locale to another, or at least would only be allowed in some countries and not others. Meanwhile everything on itch.io is available to everyone on itch.io, regardless of where they live, and it certainly includes a lot of games that would get developers and players arrested in plenty of countries already.
It seems that Steam will shortly be far more free than itch.io currently is, and that seems really wild to me.
[This is a follow-up to The end of game censorship on Steam -- really?]