The Steiner tree in Graphs problem takes a weighted graph and a terminal subset, and asks for the minimum-weight subtree containing every terminal:
Non-terminals may be included as connecting Steiner points — that's the freedom that makes (1) more powerful than the spanning tree. NP-hard (Karp).
When every vertex is a terminal, the problem collapses:
So the hardness comes entirely from the choice of which non-terminals to include. The 2-approximation via metric closure is the workhorse heuristic; the best polynomial-time approximation ratio known is roughly 1.39 (Byrka et al.).