Judging from recent publications, the Modern Steinitz is not so fashionable. However strong players still play it form time to time, and I see nothing like a refutation. I like the variety of play that can ensue. When it comes to preparation, it's a double-edged sword as both White and Black have many diverse options.
I find it interesting to compare one line to the Mar Del Plata variation of the King's Indian Defense:
1. e4 e5 2. Nf3 Nc6 3. Bb5 a6 4. Ba4 d6 5. c3 Bd7 6. d4 Nf6 7. O-O g6 8. d5 Ne7 9. Bxd7+ Nxd7 10. c4 Bg7 11. Nc3 h6 12. Ne1 O-O
1. d4 Nf6 2. c4 g6 3. Nc3 Bg7 4. e4 d6 5. Be2 O-O 6. Nf3 e5 7. O-O Nc6 8. d5 Ne7 9. Ne1 Nd7
I once thought that the trade of White square bishops favored White. In the King's Indian, Black usually tries to preserve his queen bishop. If king side pawns become locked with a pawn on h3, Black can blow the White king side open with Bxh3.
However, now I think it's probably the other way around. Trading the bishops eases Black play and the two rook pawn moves probably help Black as well.
None of this is forced for either player. I went out of my way a little to find comparable positions to help me get my bearings. I see nothing here to cause Black any great concern.