D1omedes, welcome to the world of blade steel and grinds. Life will never be the same.
Thanks. It's so true. I'm totally obsessed now.
To further complicate this for you, H1 is technically a ceramic. I don't understand it, but I asked the question in another post a while back, and the spyderco guys confirmed it. An iron based ceramic, cool.
That is cool.
The H1 serrated blades are harder at the edge than the plain edge blades, as a result of the additional grinding (work hardening) required for the serrations. I've heard the serrated H1 blades don't need to be sharpened very often, making them closer to a blade in the high-end steel range Josh discussed (like S30V maybe). The non-serrated apparently require more frequent sharpening, like a more basic steel. I have a couple non-serrated H1 blades, but haven't used them enough to have my own opinion, just repeating others' thoughts here.
As I understand it, H1 isn't just rust resistant. Rather, it just won't freakin' rust.

I read something (don't remember if it was this forum) about a guy who took the challenge, immersed it in coke for a month, salt water, salt water with electric current... He couldn't touch it. Maybe someone else knows where to find this.
I saw a guy on youtube stick a Talisman H1 in a bowl of sea water for 2 hours. It came out with just rust residue from ANOTHER knife. Pretty sick.
To continue with thoughts on hardness, you can think of harder implying more brittle. So, you have the hard, but more brittle edge, that holds an edge for a long time, and is capable of cutting/penetrating much better than a softer edge. However, don't forget 'brittle', but brittle is trumped by the softer steel behind it, and this softer steel serves as a kind of shock absorber, increasing blade strength. If you didn't have the shock absorber the blade would be too brittle and would be much more inclined to snap under impact. This is how the japanese built their swords for at least hundreds years. Reading back, I think Josh pretty much said this...
I thought that the softer spine would be a sort of shock absorber. I laugh when some complain when a blade is made overseas. When a blade is made in Japan, I'd imagine people would be happy. Katanas were the most deadly swords ever made. Nice to know there's the same Japanese ingenuity at work with the H1.
Anyhow, enough rambling out of me.