Because its an inside popup and because you have a lot of thinks to do, its better to use iframe.
Why is that, because the update panel and the wizard inside the updatepanel, and all that hidden somewhere on the page and wait to popup, its a lot of complicate code that have nothing to do with the page its self.
Also the updatePanel its send too much data from all over the page including the wizard and maybe its a little heavy.
One more reason is that some time the UpdatePanel make full post and reload of the page, see : http://stackoverflow.com/questions/2519841/asp-net-gridview-updatepanel-paging-gives-error-on-second-click In this case on the page reload the popup will remain close and use did not know whats happends.
Also the iframe is not load anything until you create it and show it to the user.
iframe example http://highslide.com/examples/iframe.html
Ajax example http://highslide.com/examples/ajax.html