I was recently in a situation where a firesteel was definitely preferable to either matches or a Bic, though it was a bit unusual.

We were doing along term (two weeks) project on Santa Rosa Island, Channel Islands National Park, camping out for the period. Due to typically high winds and highly flammable ground over (well dried grass typically, especially in the fall) fires are either restricted or highly controlled. We were cooking in a truck bed, using canister stoves and being very careful with burnables. In those conditions, a smoldering match stick or even a hot Bic, dropped inadvertently, could be a hazard. The quick, hot, but very short spark from a LMF knife was perfect - it lit the stove easily, but extinguished very quickly. And we didn't burn the island down - mission accomplished.

In more normal conditions, I would use either a Bic or matches, but the fire steel worked so well that it just might be my preferred choice in the future.