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Seems like something they should have tweaked IMO but they didn't. IMO the generator range should have been superior to steam hubs for the space surrounding the generator and the reason to build steam hubs should have been that you want to heat things that are out of range of the generator. Oh well. That's not the way it works.
By the late game it doesn't matter much anyway since you typically have way more coal production than you need, so I will sometimes research generator range anyway even though I don't need to and then tweak the position of my steam hubs to only cover what's outside of a max range generator.
BUT on top of that there are researches that reduce steam hub coal consumption by 33%, the generator only gets 20%.
And yes, you need to spend some steel to build them, 20 a piece I think.
But since Steam Hubs is a T0 tech, range upgrades are T1, T3, T5, therefore more time-consuming and expensive, and the fact that you consume less coal, you are able to just produce more steel earlier.