How does shitty products existing hurt you?
Not only that, but we are also talking about a very, very different audience.
I'm not totally happy about how it's been implemented and I very much prefer the Nexus so the future is a bit uncertain, but on the other hand it's very sad to see that a big response has been akin to "fuck the modders and fuck this industry". It just feels like people have no idea what it's like to create content for games.
Its bad for the modding community. Watch it get destoryed because people want mods, not user created DLC.
I agree it's good for large projects that could rival actual expansions though. Just not for anything else like cosmetic stuff, visual upgrades, or gameplay tweaks.
Looking at some other genres, it's not going to happen. Sim Racing for example has had paid mods for years now and now the variety and quality has been great over there; you extremely well made paid content from professional alongside free content from enthusiasts and the community is thriving. Same thing for some flying simulators. Same thing for some source mods. This isn't an exactly new concept, but it's just making it to the mainstream with an organized structure and content delivery method.
25% is abysmally low. Look at the cuts on Android and Apple store. The creator keeps 70%.
And no, those people don't have to go unpaid for their hard work. If people don't support this bullshit, then the cuts might become more favorable to the creators so that Valve can continue to pick up their free money.
It isn't just Valve, but the original IP holder too. Bethesda has every right to take a cut from money people are earning through using their intellectual property and tools, and Valve from all the logistical side. I'm not sure if 25% is enough, but it's not a totally unreasonable figure either, even if certainly in the lower-end.