I get a similar (or not exactly the same) error as the person in this topic: Installing Steam in Ubuntu 14.10. But I also can't seem to type my password (Ubuntu Pass that is) into the terminal. I have downloaded the .deb from DIRECTLY from the steam website and that doesn't seem to anything.
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There are two ways to install a .deb file:
Double click the file in your favourite file manager. This should ask for your password, then install the package.
Open a terminal, switch to the directory containing the .deb file (cd /path/to/directory) and execute "sudo dpkg -i file.deb". This might ask for your password on the terminal, and you should be able to just type it straight into the terminal. Be aware that there are no characters shown at the password prompt to prevent others from seeing it. So don't expect your password or even ****** to show up, just type it and hit enter.
I installed steam through the Ubuntu Software Center though, and that was the easiest way at the time. If this fails now, maybe you need to enable the "multiverse" repository in the "Software & Updates" settings. It says "Software restricted by copyright or legal issues", because steam is not open source software.
