That's a great summary of the differences between liquid water and steam at 100ºC. In liquid water, the molecules are indeed closely packed and interact with each other through intermolecular forces, such as hydrogen bonds. These forces keep the water molecules in a relatively fixed arrangement, allowing them to flow but not to move freely.
In contrast, when water transitions to steam (gas phase), the heat energy provided during the phase change allows the water molecules to gain enough kinetic energy to overcome these intermolecular forces. As a result, the steam molecules are much farther apart and move independently, leading to a much lower density compared to liquid water.
This difference in molecular arrangement and behavior explains many properties of water in its different states, including differences in density, viscosity, and heat capacity. If you have any specific questions or need further information on this topic, feel free to ask!