Yeah, I think I read the same threads you did before I started mine that said to use steel wool between applications. Obviously, not a good idea.
If you use something small to apply it, you'll see streaks in the metal. Use a wide paper towel or pad to apply it in long, fast, even strokes. I applied it (after removing & polishing it again) with a folded paper towel, & rinsed it under cold water basically as soon as I was done.
Where there were spots, I polished it with a microfiber cloth & Flitz & blued again if needed. I also sprayed it with Wd40 & rubbed/polished it with just a paper towel until no more discoloration came off on the paper towel before I washed it with dawn & blued again the same way. You will have hundreds of tiny pits from the bluing using the previous steel wool method, sand & polish it back up in strong light before you blue it again.
You'll be angry at how fast it works & how good it looks after going through that previous erroneous set of steps. Just make sure your surface is polished well before you start.