Hitler was still trying to act strategically
Although popular history, influenced by memoirs of surviving German generals, tries to pin German defeat on Hitler irrationality and supposed madness, in reality it was not so. All controversial decisions made by Hitler (go to Kiev in 1941, drive on oil fields in 1942, various no retreat orders, remain on Crimea in 1944 etc ... ) had some grounding in reality, and were not made by whim. Instead, Hitler usually conferred with his underlings and various advisors, including the members of German High command (OKW).
Anyway, in April 1945 situation was dire, and Germans, including Hitler, were aware they could not win against both Western Allies and Soviets with emerging Communist Block (Poland, Yugoslavia, Romania, Bulgaria) . What they did hope was repeat of Miracle of the House of Brandenburg, which happened in 18th century and saved Prussia of Frederick the Great - Russian empress (czarina) Elizabeth suddenly died, and her successor Peter III led Russia out of war with Prussia. In an essence, Germans hoped for opportunity to somehow achieve separate peace with Western Allies, and maybe even latter somehow persuade them to join fight against World communism. Germans also hoped that Soviets would soon exhaust their human resources (actually not far for truth considering tremendous Soviet casualties ) and when that happens would be forced to stop their offensive. Considering what happened later , i.e. Cold War, eventual recreation of (West) German armed forces and many Wehrmacht and Luftwaffe personnel serving in it, even being high officials of NATO , again there is some grounding in reality for all of this.
German hopes were raised when Roosevelt died on April 12, 1945 (Czarina is dead !), his successor Truman seen as possibly more anti-communist and therefore susceptible for separate ceasefire agreement. Germans also most likely correctly assumed there would be a stop and demarcation line for Western advance into Germany (for example river Elbe). Therefore, if they somehow stop fighting British and American forces, and repulse Soviet forces with sufficient territory still in their hands, they could start negotiations from position of national government that still has some levers in their hands. But in order to do that, Berlin, as a capitol and important psychological symbol would have to remain in German possession. Without Berlin, German resistance would be split into pockets (north and south) without clear national center (larger cities in the West already being occupied, as well as Vienna) .
Therefore, although from operational standpoint unreasonable, from strategical point Hitler played only remaining move. Steiner's attack, if successful would potentially allow the Germans to retain control of Berlin, and prevent Germany of being split in two (as historically did happen ). Without Steiner's attack (which historically did not materialize) Berlin was certainly lost and war ended soon. Now, it is very unlikely Steiner would have changed anything if he did attack (except increasing casualties on both sides) , but theoretically there was a chance although minuscule. Ultimately and wisely, Steiner decided that war is already lost and choose to surrender himself and his units to Western Allies, thus dashing last hopes of some kind of victory.