The dossier was to be put into the hands of people with more reputation than scruples (e.g., Hollywood-types). Steele said as much in his interviews in England.
It was all for politically-beneficial gamesmanship, not an attempt at finding truth, of which the FBI would have been well aware. We're being played when we let stand that it was "oppo research." It was waaaay thinner gruel than that.
In short, the people opposing Trump tried to do something in creating “made up” charges against Trump that would have made Reinhard Heydrich proud....
Heres the problem: Steele is not the source of the information. For purposes of the warrant application, he is the purveyor of information from other sources. The actual sources of the information are Steeles informants anonymous Russians providing accounts based on hearsay three- and four-times removed from people said to have observed the events alleged.
Read more at: http://www.nationalreview.com/article/456093/jerrold-nadler-memo-rebuttal-weak-unpersuasive