Steam can be DRM free. Paradox Interactive games are by and large DRM free and distributed by Steam as well as other means. Once you download the game and extract it, you can run the binary directly from the install without loading Steam. This is something the developer/publisher chooses mind you. Other games are horrible for demanding online authentication every single play through and making Steams snitchware (Steam snitches your pc specs, your personal information ie demographics, software you have installed, how often you use that software, play time, play style, network usage etc etc etc) a 24/7 memory hogging bandwidth hoovering fixture on your desktop. Not a fan of publishers that go down that road! We've all become a little numbed to the invasiveness of snitchware now especially since kids today don't care about it so much as oldies who remember a time before Big Money didn't live in your computer and monitor everything you do.
I actually strongly opposed Steam for years, mainly because of the high prices and the annoying online/offline authentication modes that always seem to contrive to annoy the pants off you. The auto update feature is rather irritating too, despite being user configurable hehe.
Nowdays tho I don't care too much for the alternatives; hard copy is dead as a dodo and obtaining updates is just a pain manually. Would be surprised if FD didn't use Steam. Bethesda and Segas antics in the last couple of years where they sold boxed copies of their games that were in fact just .. the Steam client .. were pretty hilarious and rather telling of the cynical two-fingery approach most publishers have toward end users who want choice and control.
Some advantages of Steam I don't care for but others love are the (chat and stats sharing) community, achievements, localisation etc. You can also have Steam generate and give out CD keys which Paradox uses in a cool way to give people forum icons to show what games they've bought - at what stage they bought them ie full retail release day and such forth. Which is cool.

Oh Steam is also pushing Linux games pretty hard now too. So from FD's point of view it could take all the hassle out of cross platform sales, content distribution and updates. Bit of a no brainer assuming FD is happy to pay them their pound of flesh and put up with the inevitable 50, 000 'it doesnt work, I paid £20 and now I want you to come round my house and fix my pc or I will never buy your games again!!' forum posts.