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For all games using Source, they do have access to 5 different Direct3D shaders.
https://developer.valvesoftware.com/wiki/DirectX_Versions
Edit: After some further digging, turns out I'm only half right. The mat_dxlevel command got removed after Left 4 Dead, locking all games into dxlevel 95 (DX 9 with SM 3).
Also, have you considered changes made with transition to Orange Box engine? Cause I'm pretty sure, Orange Box Engine removed support of anything lower than DirectX 8.0... and that transition affected Half-Life 2 and all of the episodes. I'm pretty sure, aside from games which weren't affected by transition (like Dark Messiah of Might and Magic), every Source Engine game is going to require at least DirectX 8 or maybe even DirectX 8.1 (SM - 2.0).