Does the Chairman decide who gets the money? I’d don’t know the answer to that.
I don't know either. As I checked a bit, it seems that maybe the RNSC(Cornyn) and RNCC are the folks who do the candidate searches. Cornyn supported Crist in FL, and the RNCC supported Scozzfava, so maybe Steele is off the hook for supporting moderates. Maybe the RNCs only function is to get money and put on a convention every 4 years.
I read one comment on Republicans looking for self-funders, which suggests that TPTB know that moderate Republicans don't attract money, and they don't intend to put up conservative candidates. When you have self-funding candidates, you don't need Steele to raise much money, as you don't care if contributions fall.
But maybe I'm being too cynical again.