I think the reason you don't need excess water for steeping/rinsing is because if the pH in your steep is too high, you can extract tannins from the grain. In AG/partial mash/mini mash brewing, the conversion of starch to sugar depends greatly on pH (among other things).
I did one mini-mash (used an equal quantity of 2-row with the specialty grains in the steep, tried to control temperature better, let it sit longer) when I was feeling cocky and ended up getting a lousy 45% efficiency. However, that beer has the biggest, fullest taste of any beer I've made in its gravity range.
Normally I steep and rinse on the high end of the recommended range and the beers come out good. However, I do almost all the other recommended tricks. I heartily support a late extract addition; you will get much lighter beer and more hop utilization if you want it (more bittering or save $ on hops, your choice). You will want brewing software to adjust recipes though.
I also second the notion of pulling your kettle off the heat to dissolve wort and using an immersion or flow-through chiller.
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