You are correct, for 125# steam it is a good idea to use either 250# cast iron or 300# steel. The main difference is that cast iron is much more brittle than steel.
So, if you drop a cast iron valve it may crack but not a steel.
My customers prefer also steel in steam service because of the chance of water hammer. Large banging in the pipes could crack the flange of cast iron and not steel.
In refineries and chemical plants they often do not allow cast iron, but for another reason. If there is a fire, the cast iron tensile strength breaks down at a lower temperature than that of steel.
Ductile Iron is more malleable than cast iron, has many of the same properties of steel at a reduced cost. It is a great material!