The problem was with the udev rules, which needed to be updated. See; http://steamcommunity.com/app/353370/discussions/0/490123197956024380/
So I replaced the contents in /lib/udev/rules.d/99-steam-perms.rules with this; http://pastebin.com/uUnU7Lci and after that it worked.
Nothing extracted yet.
Your system information
My steam controller stopped being recognized by steam apparently without reason. It still works as a normal HID device, (pointer moves, can click stuff etc) but steam refuses to recognize it. (Tried from the big picture -> add controller) This is with the usb cable connected.
With the radio dongle, it works as long as I first open the hidraw1 on /dev folder with sudo cat hidraw1
If I boot to windows steam recognizes the controller ok.
Any tips on how to start debugging this?
I checked /lib/udev/rules.d folder and the only steam-related file there is 99-steam-perms.rules,
http://pastebin.com/QjpTjG7X
This seems ok to me, and I've no other ideas where to start looking from.