It's been confirmed, 3 (5:15 PM central time zone) minutes ago steam blocked all connections from computers using cafe accounts. No connection can be made apparently without a steam cert, at least according to some one on my msn. I think Valve finally got smart and only allowed connections based on the isp or ip of the cafe. I will take a look and try to find out how they did it.
I am thinking it might be just the accounts are being deleted.