At this point, Microsoft is understanding why users prefer the Steam service. Mainly it has to do with great support, and as so GFWL seems to be improving in that regards. While these new features for version 3 sounds immense, it still needs more improvement underneath the surface with games that actually support the service. GFWL also suffers from a clunky UI that is rather unattractive with few integrated community features that Steam administers. Currently, Steam is in a league of it's own with little to no competition respectively.
About as well as they've been doing to this point: A sub-par service with barely a handfull of games. Comparing GFWL to Steam is like comparing little league to MLB.
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