£799 for a steel frame is bonkers
It really isn’t, or it may be. Depends.
With the same outer diameter, the different grades of steel make a difference to the weight of a frame, but not the flexibility,
Same tube dimensions = same stiffness, only the strength varies as the alloy changes (assuming by grade you mean alloy eg 853 vs 4130 etc. If by grade you mean butting, that does affect flexibility as well as weight).
Anyway. I’d rather have a well designed 4130 frame than an 853 (etc) frame that uses duff tube dimensions for the use I’d give it. Basic Cr-Mo in the right dimensions is brilliant stuff for a bike frame.