There is very little really scrap metal in the model engineer's world. (If it is, it's too small to hold, already swarf!)
It is amazing what can be made from material that is lying around, waiting to "Come in handy, one day"
A lot Fred Dibnah's materials, apparently, came from the local scrapyard, with little or no provenance.
Given that much of what we make will be lightly loaded, little used, and adequately lubricated (Road Engines and Locos possibly excepted re use and loading) there is little need for the moving parts to be fully hardened as in full scale.
"The Biggest Little Train" shows what can be achieved. Admittedly, "The Silver Lady" had regular maintenance, but still completed some 3,000 scale miles, over fairly arduous conditions, in places where a full scale loco would not have ventured. And probably contained few, if any hardened components?
We are Model Engineers, The word Engineer stems from "Ingenious", so should we be!
Howard