Initially it was lower (but above the 300 mark for regular steam boilers) , as I didn't want the player to use it for too much power, but someone wanted more power, so I set it higher. The number itself is fairly meaningless - as your quite right, functionally it just needs to be above 500... I figured maybe in tandem with other mods who need higher temp steams it might have interesting side effects I suppose, so halfway between 500 and 1000 felt like a reasonable choice.