So what does all of this mean as far as heat treat and stuff? Edge Retention to me is how well a blade can hold an edge through use. So the tougher the steel the more brittle is it?
What is your use? For most people it's cardboard, paper, plastic, in which case the most wear resistant steel would be best. If you do lots of stuff that would destroy the edge (scraping, digging, cutting open bags of cement etc...) then no steel will hold it's edge and you may as well be using a disposable blade.
Edge retention is a combination of wear resistance, fracture resistance, and resistance to plastic deformation (hardness). In some environments corrosion resistance is a factor, but not where I live

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For chopping knives that may hit rocks or other hard things occasionally, fracture resistance is most important. For knives that cut hard, but non abrasive material (wood), resistance to deformation is best (high hardness). For knives that cut abrasive material (cardboard) you want wear resistance.
The balance between hardness and fracture resistance is most readily apparent. Take two blades, one harder one softer, and the softer one will be less likely to chip.
Wear resistance is a little more complicated. Hardness does affect wear resistance, but alloy usually plays the bigger role. If you take a low alloy steel, 420HC, and compare it with something like S30V, even at the same hardness S30V will be much more wear resistant.
To achieve high wear resistance you do have to give up some fracture reistance (420HC is much more resistant than S30V), though the new CPM steel types buck the trend a little. S30V is an extra high alloy steel, though it maintains similar fracture resistance to 154CM through the use of particle metallurgy.
It must be understood that there is an almost infinite number of variations out there, each one made for a specific purpose. Often times the rules can be "bent" a little in one way or another to suit your needs. The important thing is to find the steel type that matches your intended use.
Terms like "toughness" and "edge retention" are very loose. Both are a combination of all the attributes of the blade, combined with the attributes of the material being cut, and the methods being used to cut it. Don't underestimate the effects of edge geometry either.