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Switching to a higher tier tool isn't necessarily a linear path, though. Attack speed does matter, but whether or not you're bottoming out your stamina constantly matters too. Having a Q6 Steel Pickaxe is going to be worse than an iron axe when you can only swing the thing twice before emptying your stamina. So it is with stone vs iron; IF you don't have the stamina regen and max stamina to support using the better tool, then using the better tool is a downgrade.
And as mentioned, quality affects a number of stats, among which is block damage. But more importantly, quality effects the number of mod slots on the item. Every installed mod on a weapon/tool increases it's primary stat by 15% in addition to whatever other effect the mod brings to the table; For Tools, the primary stat is Block Damage. So your Q6 Stone Axe can fit on 4 mods and is doing 1.6x as much damage, while your orange iron axe only has I think 1 slot on it, therefor only doing 1.15x as much damage.
Edit: ninja’d by Shurenai. Must type faster!