Modifying your original terms:
Size: 2-3 quart/liter. I consider 2.5 quarts to be ideal.
Material: Two options: hard-anodized aluminum nonstick, OR stainless-steel interior/exterior. With stainless, it should have either an encapsulated aluminum disk base or a tri-ply construction (aluminum layered with stainless)
Bottom: Thick is good, and you absolutely must have aluminum here for conduction
Handle: stainless is good, as long as it stays relatively cool. The handle absolutely must be riveted on, with thick rivets. Screws, glue, or welded handles do not last long-term. Tack-welded handles are the bane of the restaurant I work for right now; we've had several handles snap off in the last year.
Additional things to look for:
Weight: HEAVY. You want fairly thick cookware for even heating, but most of that weight should be from thickness of the aluminum disk.
Design: A flared lip around the pot, to facilitate clean pouring.
Shape: I'm partial to shallow designs, which flare out at the top. Although it's nonstick and not stainless, I love my Calphalon Contemporary shallow 2.5 qt saucepan for it's extra-flared design. This lets it transmit heat more efficiently from the range, and allows it to safely hold a larger capacity of food. It also allows for faster and cleaner reduction of sauces.
Lid: TEMPERED GLASS with a handle on top, and a flange to help seal tightly on the pot/pan. Tempered glass is very durable and lets you see the progress of your cooking without releasing the steam. The handle also remains cool, so you don't burn yourself on it; this is the second problem I have with solid stainless lids on many premium cookware lines (All Clad, and most manufacturers' tri-ply products).
You might have given the answer in your question. If the device is to be used as a steamer as well, then there has to be enough room at the bottom of the pot for steaming. How much is enough? There are two things to consider:
The bottom section should hold enough liquid that there won't be concerns about boiling the pot dry for anything you might want to steam. Longer steam items might include mussels, lobster, or tamales.
There should be some 'air margin' for foods like tamales or broccoli, so that the boil splatter doesn't render the food soggy.
Based on FuzzyChef's comment, it sounds like there are tools that suit your needs better. Perhaps it's time to put your steamer on Craigslist? :)
Best Answer
It should not be a big problem.
Just be careful not let the exposed area rust,
Clean and dry thoroughly.