There is no persistence with the -nofbo option, so double check (using ps) that you really did pull the command line. I did do an update today that would disable the FBO option if you didn't have the FBO function entry points, but if you are hitting this then you would have just crashed anyway.
On Windows so I had to use wmic -> process
Argh, I see the bug, will fix.
I just did a hotfix for this issue, restart Steam to pick it up (or wait a few minutes).
Nothing extracted yet.
Earlier today I added "-nofbo" to my cs launch options to check some stuff with Open Broadcaster Software, and after removing it from my launch options, CS and HL keep launching as if it's still there.
I've tried completely reinstalling the HL/CS betas, deleting all Valve related stuff in the registry, and completely removing all of my launch options from both CS and HL.
Can't figure out what the problem is.