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5.0L (1979-1995) MustangTechnical discussions on 5.0 Liter Mustangs within. This does not include the 5.0 from the 2011 Mustang GT. That information is in the 2005-1011 section.
Aluminum is lighter and lets the engine rev quicker, steel is heavier and lets the engine run smoother(especially at lower rpm). The flywheel has weight in it in order to maintain rotating inertia between power pulses(every 90 degrees in American 90deg v8's). Lighter flywheel doesn't have as much inertia, so the engine may idle rougher and run a bit rougher at lower rpm, but less inertia also means it can be accelerated more quickly
Im guessing it is for people who are tryin to make thier cars lighter. But I am sure a steel clutch will last ALOT longer, depending on if you know how to drive a stick or not.