My son did just fine racing on his steel Serotta... since he was ranked the #5 junior in the USA that year, I think one needs to be careful you are comparing apples to apples. A steel road bike, with road bike geometry is probably not the same as a steel Surley that is more relaxed, etc. I had a steel Jamis Coda, which was awesome, but it was not the same as my road bikes, and it felt like a tank, though plush.
My other son is now riding the Serotta, and he is fast.