(Original post by Dastrea)
Yes. If you have the feature off when you go offline it will stay off OR you will get a dialog box which says 'Your appearing offline do you want to change this?'.
EDIT: You won't be able to change your steam display picture while offline (kinda relevant?) but you can still change your name :P
It automatically goes to 'appear offline' when i log in now, but next to my name in the little 'my friends' box, it shows the time since i've last been online which gives away when i was online (so it would say 5 secs, 10 secs, 15 secs etc....). I expected it to indicate when i was last online as in appearing online to my friends which is 20 mins ago when i change my status settings according from your post. So what I want to know is, would my friends still see when i was last online (online on steam, but appear offline to friends) as I am able to?
basicaly it defeats the purpose of appearing offline if friends could see when was the last time you were online was something like 10mins ago, when you want it to be something like 5 hours ago (i.e the last time you appeared online to them)