I don't see any way you cut a player that is one of the best at his position and also has the versatility to be very good at others.
Despite his warts, his contract is very good. It's highly unusual for those type guys just to be cut. Maybe you trade him for a good pick, but you just don't walk away from a player like that.
In my humble opinion, I would like to see him get his job back. Steele has been phenomenal and as was posted earlier, the 19th rated OT. But if you have a potential best RT in the game you play him. Just because Steele has been very, very good doesn't mean he cannot be replaced with excellent.
Having said that, I can also see the reason many posters would like to see him replace Williams. They have a valid argument too.