The properties of steel versus aluminum that your friend is commenting on revolves around the ductility and malleability of the two metals. Steel is more flexible than aluminum. Steel rims will bend upon hard impact with solid things (rocks, curbs) where the aluminum may fracture or split. Aluminum rims generally weigh less and are stronger per unit weight. Then there are differences in cast, forged, and billet aluminum wheels. There is a whole science to this...metallurgy.

I think the gist of your concern is: "Which is better?"

Each wheel type has pro/con like every other decision. The little Montero isn't going to flex out a steel wheel like a LeMans racer, semi-truck or heavy equipment.

Cheers,
Russell

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1987 Raider - Roxy
1988 Mighty Max 2.6L Turbo - Pearl
1997 Mountaineer V8 - Freddy
2000 Excursion V10 - Freya