Cage is roughly in the same strength class as Spider-man. He beat Sabertooth with relative easy. Some of that was because Creed's claws couldn't pierce his super-dense skin, but he was also clearly stronger.
He's a powerful fighter but only mildly superhuman. He's a good match for Wolverine, Captain America, and people in this weight class. Against Spider-man he can put up a good fight, but it'll be a losing one unless he has some sort of equalizer.
This was also written by then regular writer of Power Man and Iron Fist, Mary Jo Duffy. When it came to the characters portrayals, she was stuck in a mindset that Cage was durable enough to tank the Iron Fist, and actually had Danny himself point out that he could never defeat Cage in a fight.
Even after Claremont was involved in a story where Danny takes out Warhawk without using the Iron Fist, she writers her own story where Warhawk gets right up from it, then promptly beats him down, and later Cage overpowers him.
Aside from her interpretation of the characters power levels, I personally didn't think she was a very good writer. But she was the one keeping the ship afloat, until power players like Priest, Busiek, or Claremont gave their contributions..