Akoni,
In response to your original question about the technical reason why it is usually advised not to shoot steel cased ammo in an AR, this is what I have gathered:
The .223 / 5.56mm case has very little taper (from the rim to the shoulder). This design does little to aid in the ease of extracting the case from the chamber. When a round is fired, pressure and heat case the case to expand, it begins to cool, contracts a little, it is then extracted. All this happens VERY quickly, of course. I have heard (I’m no metalugist…or whatever…) that steel is affected more by this heat and pressure, expands to a greater amount than brass, and does not cool as fast. Therefore, it is more prone to getting “stuck” in the chamber - not cooling and contracting enough in the fraction of a second after firing to be extracted. Even if it does extract, it has more friction on the chamber walls, and is more difficult to extract. This results in accelerated extractor wear. If it is “stuck” in the chamber really good, it will not extract at all, and can result in a case with a torn rim and the case physically stuck in the chamber, and or a broken extractor.
The 7.62x39mm, 5.45x39mm, 7.62x54mm (AK and SKS rounds) have a heavy taper from the rim to the shoulder. These cases have a built in feature that eases extraction and makes heating / cooling, expanding / contracting cases not nearly as much of an issue. Guns chambered in these cartridges have no problem running steel cased ammo.
Now, all that being said, as you know many people run steel cased ammo in AR’s and lots say it is doing fine. If you wanted to make an upgrade to help allow steel to run well in an AR, I would suggest using a 5.56 chamber (instead of the tighter .223), looking into extractors made of very hard steel (they probably already are…) and an extra power extractor spring.
Or, you could buy / build an AR chambered in 7.62x39mm. However, I hear that good mags are really hard to come by. I’m not even sure that any high capacity mags exist for this application. I have seen 10 rounders, though.
Again, I am no expert, and someone may be along very shortly that can answer your question better than me. Hope this helped.