korell: Yes. But it's still Steamworks. I only got it on retail disc as I didn't want to spend ages downloading it via Steam.
Wishbone: Curiously enough, that's exactly what it tried to do in my case. I had to find a bug report with a workaround to get it to install the game from the disc. And even then, it only installed most of it. A sizeable portion of the game still had to be downloaded from Steam before the installation was complete.
Yeah, that is a Steam bug that sometimes happens. Some users had the same thing happen with Duke Nukem Forever too, and I experienced it with TF2 from my Orange Box collection. I think if you cancel the download, clear any downloaded files then re-start the disc installer it will then install from disc.
I think when I installed it I had something like a few hundred MB to download to complete the installation, but then that's to be expected with Valve's games.