I'd say steel and aluminum come out about even in terms of their value for bicycles at the lower budget end

Steel: - Pro: More repairable (bend it right back!) - Pro: More comfortable ride - Con: Heavier - Con: prone to rust if the finish gets marred

Aluminum: - Pro: No corrosion, even when the paint is gone. - Pro: Lighter - Con: Not repairable - Con: less comfortable

All this to say, I agree with you, but there are more considerations than weight and ride comfort. My beater bike (ride around and lock up in the city, through salt and snow and any random crap) is aluminum and cheap. My commute bike is steel and more expensive, but takes a bit more care.