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I don’t see how that is “steam” economy.
That’s just economy when you try to sell anything, specially anything art related.
If you made any art and try to sell it in any store the most probably amount of money made is the same number in every currency.
Valve is a for profit company that decides which games to advertise.
The advertisement algorithm is pretty much understood. It depends on wishlist and first day sales.
It’s not like Gabe, or anyone, is sitting there deciding which game gets advertised and which game isn’t. As far as algorithms go, steam one is pretty straightforward and fair afaik.
They are indeed in charge of the ads on their website, not only they can decide what gets featured in ads but they also design the website page and the ads placement as they like.
Wouldn’t they just advertise whatever makes them the most money, which would be the games people want to buy? I don’t see this as being radically different from how games were before steam was popular.