After taking a closer look, I noticed that I really didn't apply the addititonal damage correctly, so I'll rework that for the next release. However, the above still applies: Additional damage due to higher temperature is based on scripting at runtime, the prototypes don't know about this, and the tooltip will still show only the base damage.
Regarding balancing: I've used Creative Mod to generate steam with a temperature 1000 °C. The resulting factor (1000/165) is about 6, so instead of 0.15/s you'd get 0.9/s -- which still isn't a lot. Perhaps I should square the factor?
total_damage = final_damage * (hot_temperature/base_temperature)^2
This wouldn't affect the damage done by normal steam (because 1 squared still is 1), but dramatically increase the damage of steam at higher temperatures -- up to 5.4 HP for steam at 1000 *C. Do you think that's too much?
Another thing that bothers me: What if a mod made steam with a temperature between 100 °C and 165 °C? This should deal less damage than base steam. But if the health of an entity was the same or less than final_damage_amount (damage remaining after all resistance and damage modifiers have been applied to the base damage), it's health will be set to 0, so adding final_damage back to entity health, multiplying final_damage with the temperature factor, and substracting that value from entity health again will produce incorrect results. Unfortunately, there is no way to get the health an entity had before it took damage -- that's a limitation of base Factorio that must (but won't) be fixed by the devs.