Steel is much stronger so you can build much bigger buildings with it. Imagine 25-stories apartment/office building with steel skeleton and wood for walls.

Exactly, and CLT can even be used structurally, but it has diminishing returns as buildings get bigger, which is where steel could come in. And I think steel is easily recycled.

At least ~300ft buildings are no problems at all. That's not 25 stories but it's still the vast majority of buildings.

I did not say not to use wood. What advantages do you 'imagine' for using wood as main supporting structures, against something already extensively used, steel?