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You Can Now Delete Unwanted Games from Steam

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Valve will now allow users to delete games from their Steam library. Valve did not announce this feature publicly, but NeoGAF user Enter the Dragon Punch found the option on Steam's support page.

To delete a game, select "Help" from the menu bar of the Steam client, then "Steam Support." Click on "Games, Software, etc." to open up a list of your games and select the game you want to delete, then click "I want to permanently remove this game from my account." It'll ask you again to if you're sure, and if you are, click "I want to permanently remove this game from my account."

Valve notes that you should uninstall the game before removing the game from your library, or else you'll have to dig through the depths of your computer to delete the files.

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