~/Steam/ was used for the beta a year ago, default installs are now in ~/.local/share/, you can either wipe your install, or play with the symlinks in ~/.steam/ to get up to date.
Whereas ~/.steam/ is used as a handy method to refer to the runtime and other files at a fixed point across distros, moving to ~/.config/steam would breaks for users with different XDG paths, increasing their dir spam.
This bug boils down to being a duplicate of #1890, ‘use XDG paths’ which has some merit.
Nothing extracted yet.
All the files steam stores must best stored in ~/.config/steam/
At the moment I have a ~/Steam/ folder and a ~/.steam/ folder, I (and everyone else) hates having our /home/ directory spammed up. Stick all the contents into ~/.config/steam/!