The "played for less than two hours" refund policy is more of a compromise than great, IMHO.

It works well for games that are quick to run and enjoy. However, quite a few of the games I've played will easily burn two hours on loading, compiling shaders, watching unskippable branding animations (splash screens), tuning graphics settings, setting up key bindings, and working past miscellaneous bugs.

Steam's "play time" clock starts when the game executable is launched, and keeps running during all of that nonsense, even at title screens and menus. Some games have run past Valve's return window before I got even a minute of play time.

It would be nice if one of Steam's widely used APIs (Steamworks?) included a way for a game to register when it is actually being played, as opposed to loading or setting up or sitting at a pause screen. I think this would help with the return window problem, and finally make the played hours count on our Steam profiles somewhat accurate.