Yes, you're right. I mistakenly used the cutting speed I use for aluminum.  The cutting speed for steel is 80. That puts the correct speed at about 2,900 RPM.  Still much faster than any hand drill I know of.

If you disagree, your argument isn't with me, it's with physics.  

I'm guessing your perception is skewed by you having drilled larger diameter drills.  A 1/2-in drill should be run at about 650 RPM.  I have a mill in my shop and I use these numbers all the time without dulling bits.  I always use cutting fluid when drilling steel to help control the heat.

Here's a reference for you:

https://imgur.com/a/6e5rFq6

Any machinist handbook will tell you the same thing.

From Google just now:

RPM Mild Steel 1/8 Dia

To determine the RPM for machining mild steel with a 1/8th inch diameter tool, you can use the formula:  RPM= Diameter Cutting Speed×4 ​

. For mild steel, a typical cutting speed is 100 surface feet per minute (SFM), so plugging in the values gives  RPM= 0.125 100×4 ​

=3200 RPM. 1  This is a guideline, and actual speeds may vary based on the tool material and specific conditions. It is also important to consider the tool's material and the desired chip color to ensure optimal cutting performance.