That will require a great deal of innovation - just not the sort of end user facing magic that the Valve of old produced.
Unfortunately I fully expect the external visage of the new Valve to be a smooth and greasy risk-adverse PR experience - but hopefully they can provide a platform that someone else can use to produce Half-Life caliber games in the future.
If cloud gaming becomes something more than a dream, Valve is going to suffer hugely if the don't have a viable competitive offering.
Anyway, ignore me - I'm not sleeping too well today but now, and my brain's a bit melty.
What I'm thinking is branch prediction without the ability to roll back. You'll need to be able to minimise user noticable mistakes, as well as making any corrections minimally distracting.
I'm imagining auto-aim on steroids.
I don't think that they forgot about the technology side of things - but I do think that in leaving behind so much of what inspired them to expand in the first place, they may have drowned their muse.
At very least, I think they have compromised their ability to dog-food what they're working on.