>>13458728It's not overpowered specifically because it's defensively oriented and the only types it's super-effective against (Ice and Rock) are both weak to many other better offensive types already.
With the exception of Dragon, Steel is weak or neutral to the best attacking types in the game (Ground, Fire, Fighting, Water), which is often compounded by its common pairing with the Rock or Ground types. Steel types, like Rock, generally have much poorer Special Defense than Defense, which obviously makes them poor special walls when combined with their lack of resistance to Water, Fire or Electric.
Them being super-effective against Fairy isn't a huge game changer because Steel has very few viable offensive Pokemon and even fewer good attacks.