Emre,
You meant "eutectoid or hyper-eutectoid steel". Hypo-eutectoid is what 1050/1065 is, meaning below the eutectoid.
Other than that, you explained it pretty well.
There is not enough carbon to go around, so some of the iron stays as ferrite.The unused ferrite is distributed among the martensite.
This gives a sort of situation that could be visualized as a material made of rubber balls and ball bearings. In 1060, the rubber (iron) is real tough, and the bearings (martensite) are real hard. The rubber will wear down more easily than the bearings,though. However, the rubber will take much more abuse than the bearings, and not break off .
Now if you add in some really good glue, to lock the whole mess together, you have added an alloy. This is what 5160 does. The extra iron gets tied up with the chromium, making chromium carbides, and the whole material gets even tougher. But the martensite is still the same percentage as the 1060. It is just in a tougher matrix.
Choosing steel types can be confusing in the beginning. That is why most advisers suggest using a steel that falls in the middle of most ranges.....like 1084, O-1, 5160. These steels will perform most tasks just fine with a little ease in forging and HT. As you add more alloy to the mix, you get more detailed HT and forging requirements. You should pick one that you can get easily, order enough of it to make about ten knives, and use only that steel until you have used it up. Then you will have a little understanding of its properties. Some makers never move on to another steel, and specialize in perfecting the HT to get the absolute most from their chosen steel.
Not trying to sell anyone on 1084, but as the eutectoid, it is the simplest steel that has a full martensitic structure upon proper quench. Knife blades are made from martensite.100% martensite is as much as you can get. When annealed fully it forms 100% pearlite, which is as soft as you can get for sanding/filing. It isn't the Holy Grail of steels, but it is as simple and good as anyone could ask for to learn on.Any knife properly made with 1084 will be a good knife as far as edge retention, hardness, and toughness are concerned.
Stacy