The Steambox is an amazing concept that might just end the PC VS. Console wars. Or at least I hope so. Haven't heard about Valve waiting to launch it along with HL3 though.

mickey megabyte said:
also i've read that there won't be an episode 3, but instead will be HL3.

valve have yet to make an official statement.
Nope, there will be an EP3 first and HL3 after.