I think it was a video for MTU medium size diesel engine they mentioned a cast steel block and showed using steel scrap in the mix. The reason I feel they only used cast iron is just like now, why they use a lot of aluminum for all the "junk" engines. Small lawn mower size up to the general automotive engines. Its all about the cost to manufacture, they don't give a rip if the parts crack years down the road.
Cast steel would be much easier to deal with as far as welding. It may add a bit more rejection during the casting process, again all about the costs.
Tugboat, yeah good old cracked D342 pistons, I have reused them many times, thems aluminum, and never had a problem with them.