This begs the question what gives Iota value? I need to read more about how it's distributed.

Steemit/Bitcoin have work algorithms that determine how new coins are distributed. In my view this is what gives these currencies real value.

The fact that you need to pay to make a transaction in Bitcoin is a difference with Steem which allows free transactions but rate limits how much you can use the network. Once value has been created and distributed in these systems there is a difference in that one charges, the other doesn't.

I would be interested in learning how Iota creates value to understand what value it can transfer.

Isn't it great we are talking about the fundamental aspects of the currencies rather than the current market cap :)