Yeah but here's the thing though: if the "games" in question are considered illegal in Australia, then if Steam was already trivially demonstrably breaking Australian law by selling them in the Australian market and could have been taken to court.
That is not what happened here. Instead an Australian group demanded Australian law be applied globally, and now you can fuck right off and maybe learn about the fact that an entire planet exists outside of where you live, with not just wildly different laws, but also wildly different attitudes towards what is considered real or not.