A digital distribution service owned by Valve Corporation. Originally created to distribute Valve's own games, Steam has since become the de facto standard for digital distribution of PC games.
From what I remember, the only games that can be gifted if you repurchase them via pack are Half-Life 2, the two episodes, and (maybe) Team Fortress 2.
Everything else, nope. I've purchased World of Goo, Bioshock, Audiosurf, and the X-COM games more than once and never got to gift them, which sucks. In the same vein I can sort of see where they're coming from.
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