What exactly prevents you from just heating the steam to like 2K? Would the ISP still be worse, or is that just more of an engineering nightmare?
The temperature of gas in a conventional rocket engine is high enough to melt or vaporize the thrust chamber; only cooling and limits on heat transfer to the walls keeps that from happening. In the SpaceX Raptor engine, for example, the gas reaches a temperature of at least 3500 C. In comparison, the boiling point of iron at 1 bar is 2870 C.
Hypothetically though, if you would just pressurize e.g. H2, then cool it, then pressurize it further-- should that not get you higher exhaust velocity that just heating/burning? why does that scheme not work?