Your OpenGL support is not configured properly so Steam can't run.
How do I fix it?
I don't know as I don't know what your problem is from the Steam output. How did you install your video driver (AMD/NVIDIA/Intel)? You might try updating that. You might also have an issue with the 32-bit libs, which Steam needs. That's more complicated, but if you search on the Steam for Linux forum for opengl you'll see a lot of different posts and suggestions.
I updated my OpenGL drivers, thats what you mean right?
In addition to the basic OpenGL drivers (which will be 64-bit as you are running 64-bit) you need 32-bit OpenGL support. If you look at the Steam for Linux forum for 'opengl' you'll see a number of posts on this.
Closing as this isn't a Steam issue.
Nothing extracted yet.
The steam updater starts, but quickly chrashes. The terminal says this:
user@ChrUbuntu:~$ steam
Running Steam on ubuntu 12.04 64-bit
STEAM_RUNTIME is enabled automatically
Installing breakpad exception handler for appid(steam)/version(1376004290_client)
Xlib: extension "GLX" missing on display ":0".
Installing breakpad exception handler for appid(steam)/version(1376004290_client)
Installing breakpad exception handler for appid(steam)/version(1376004290_client)
Installing breakpad exception handler for appid(steam)/version(1376004290_client)
unlinked 0 orphaned pipes
removing stale semaphore last operated on by process 2721 with name 0eBlobRegistryMutex_B48157C98D0AAB4AAB2E8BAEEFD3A740
removing stale semaphore last operated on by process 2721 with name 0eBlobRegistrySignal_B48157C98D0AAB4AAB2E8BAEEFD3A740
removing stale semaphore last operated on by process 2721 with name 0emSteamEngineInstance
removing stale semaphore last operated on by process 2721 with name 0eSteamEngineLock
Xlib: extension "GLX" missing on display ":0".
OpenGL GLX extension not supported by displayuser@ChrUbuntu:~$