I shoot steel almost exclusively... No wear, no problems... I shoot the Wolf Military Classic. There is no lacquer on the casings. It can also be reloaded. Just get berdan primers from wolf, that sells them here in the US now. There are some good how-to's out there on AR15.net...
This notion that its bad for you AR is a myth, the steel in the casings in softer than the steel in your chamber/barrel/bolt so the casing wears and not your parts... Just make sure you get good ammo, its clean and rust free and it will shoot just fine. The accuracy is not quite as good as LC, but for 1/3 the cost, its great for plinking or running though drills. There are AR elitist's out there that will sneer at steel cased ammo, but in reality its not nearly as bad as the myths out there make it out to be, if its really actually bad at all... Here is a good read...
http://cheaperthandirt.com/blog/?p=2858