Sometimes a reference to 3rd step depends on the number of steps that are chosen.  I typically simplify any expression at 'a few steps' rather than more steps unless the additional steps are helpful. 

The 'Options' tab allows some variability in determining how many steps are most useful. 

The common theme I see in the complicated simplifications is the cancellation of common factors.  The changing of 4 to 2^2 is simply a feature of the software, in that all integers are prime factored. Prime factorization is a good practice because it helps identify common terms in the numerator and denominator of any fraction and therefore ensures that cancellations are properly recognized.