It was very late when I watched it last night and I assumed I didn't quite get that because I was tired. I was kind of just enjoying the sights and sounds of the show without putting too much thinking into it. Maybe it wasn't just me though.

I had some plot possibilities worked out in my head, too, and this didn't quite jive with my speculation. Unless Joe is lying to put Steve off the trail in which case speculation is still open. But that still doesn't explain Steve's acceptance of this.