Hi Chris
No argument here!
ATF, in fact, is not the best fluid in the world, but is the most available and is quite suitable for hydrostatic steering systems. In fact, although it is specifically formulated for automatic transmissions, it is perhaps not even the best for them as it is so "thin" that it doesn't provide maximum protection in terms of wear. In a H/S steering system, however, this is not a problem.
Using universal oils for steering is fine if the SAE rating is sufficient to ensure that the oil has a low enough viscosity to circulate freely, and without placing unnecessary pressure on components such as the relief valve/s, seals and pump. Universals do, however, contain additives that are completely unnecessary for an H/S steering system - such as detergents - and these can harm the system in time...if only by "finding leaks" and affecting seals.
ATF will not damage an engine unless the proportion of ATF exceeds about 25%bv of the sump volume, and even then it is only as you describe; by loosening deposits. Above this concentration, however, you are also seriously reducing the protective quality of the sump lubricant in high-stress areas such as the crank...
The important issue with steering oil is the Viscosity Index, whereby a balance must be struck between steering functionality and protection of components. Low viscosity universal oils will achieve this, but the additives are - at best - useless and/or costly, and - at worst - harmful.