Ugh, it does. Big time. Well, they had better fix it, or give buyers a credit. How do you put a defective game on sale TWICE in one year?!?! First Stubbs, now this.
It's too bad, the game looks INCREDIBLE.

a LOT of people are outraged. Steam knew about the issues and they aren't issuing refunds.

Valve has recently started to earn a reputation for knowingly selling games that are partly or completely broken on a large number of systems (e.g. Jedi Knight), and to make matters worse some perfectly playable games are made inaccessible by later Steam client updates that cause the DRM to fail to authenticate correctly (e.g. Earth 2160). You might be lucky enough to find a vague line or two about compatibility woes on the store page, but otherwise you need to check the forums before risking your money.
Valve eventually fixes these problems (having the story appear on gaming news sites helps, no doubt) but in the meantime all you can do is beg for a refund and pray that Valve actually considers honouring your request (despite refunds for obviously faulty/deceptive products or services being a basic consumer right backed up by law).
Valve is similarly reluctant to divulge additional DRM. You would think that Steam's DRM would be enough for publishers, but I can think of several recent cases where games with hidden activation limits only had the DRM disclosed on the store page after unfortunate early buyers raised the alarm in multi-page threads in the forums. I suspect that this behaviour has caused some customers to cease pre-purchasing games until such threads arrive, but this comes at the cost of missing out on special pre-release discounts.
Caveat emptor indeed.

And Valve will stick to that approach of not caring until the unlikely event that someone finally arranges a class action lawsuit to put them in place.
To add to Arkose's list:
Valve ignored game breaking problems with Jagged Alliance 2 (and Unfinished Business) for over 12 months. They even started ignoring any tickets submitted on the issues.
They have proven completely inept at deploying patches (sent to them by developers) for Two Worlds, Jagged Alliance 2, Sacred 2 (on pretty much every occasion a patch has been issued), and a few other games.
They still sell Drug Wars (aka Merchant of Brooklyn) knowing full well that the game cannot be played, for one thing the UI has remained broken (doesn't even display on screen anymore) now since the last update to the game in June.
The list goes on and on.

There's another game, Slamit pinball that was terribly broken as well. I had that refunded (If you threaten to not shop with them again, they will refund you anything...I have had 4-5 refunds issued in the 3-4 years I have been on Steam), but I would rather give them time with Lucidity, since I really want to play it.

Fat chance, I'd probably have to live in the US to get that. Bastards.

Drug Wars is a shitty game to begin with, so it wasn't like it mattered.

But how will people find out, if they can't play it? :P