If I had to guess, it isn't that steel is stronger in this case, but better at heat conduction/dissipation.
I always looked at it as a really neat puzzle, but one that is easily solved if you know the "trick". Just like those "IQ Tester" puzzles where you have n holes and (n-1) pegs, and you're supposed to jump the pegs checkers-style until there is only one left. It is fun to pass the time, but once you figure it out you're done. Of course, the trick these days is to see how quickly you can solve it, or doing it blindfold, or under water, or whatever. That's why I wouldn't classify it as the "greatest geek toy".
I didn't see the SA article, but I found what I am sure is the paper that caught SA's attention. A 1982 article in the European Journal of Physics by Marx, Gajzágó, and Gnädig. It is an entertaining article on how a physicist can see the universe in a Rubik's cube. However, since apparently a 3x3x3 cube forms a mathematical group, and if one takes quantum mechanics to be consistent with group theory, their conclusions are not very surprising. I am grateful for the reference and I look forward to reading the full paper.
In support of your argument, from the conclusion of the paper, the authors write:
And let us call the attention of the physics professors to what David Singmaster wrote in his paper to the International Congress on Mathematical Education: ‘The cube is probably the most educational toy ever invented.’
I disagree with your overly-pessimistic comments.
1. Perhaps, but more likely because this is basic research it also can simply have shown to have not panned out.
2. For research at this level, it is never really "finished." There are always avenues to explore and interesting things to look into. The hard part is convincing a funding agency to let you go down those rat holes. The leap between basic research and "weaponizing" is bigger than the leap between basic research and commercializing. In other words, it happens very rarely.
3. I would like to see you provide some examples of this, particularly if you are suggesting this is so common as to happen regularly.
There are many things imposed upon the DoD that they do not want, but Congress inserts them via pork. Stevens was probably the best example of the worst part of the pork barrel process. He probably sent more money to Alaska than Byrd did to West Virginia (remember "the bridge to nowhere"? That was a tiny drop in the Stevens pork money ocean). One example off the top of my head, I recall years ago that he tried to have a NSF polar monitoring station (remember, this is supposed to be in the polar regions) moved to Alaska because it is cold there too. You can easily google major weapons programs the DoD doesn't want, but can't cancel because of pork.
The Air Force isn't going to spend their limited R&D funding on something that was set up with pork money unless it actually turns out to show that it has value (pork doesn't necessarily mean the idea is bad, but more often than not if the idea was good enough to stand up to peer review and other criticism, it would get funding via some legitimate channel).
Every successful person has had failures but repeated failure is no guarantee of eventual success.