It used to be for diving that your main choice for steel in a knife was 440A stainless ( in the good knives ) ... leser ones were 420 ... on average they would be very "soft" and would take a really poor edge. Serrations were developed because they improved things but there are plus and minus points here. Now with the advent of special silicon sprays designed to give a protective "skin" over the steel to prevent oxidisation there is the oppertunity to use a much more robust steel for diving knives which you might also want to use on dry land for normal knife duties. This is particularly so in a military context.
Diving knives using titanium are IMO only really needed for EOD use where anti-magnetic issues make them a neccessity. H1 may well be rust proof but how does it work as a pry bar ? Ditto Titanium ?
I like a diving knife which can be long enough to be anchored above and below my calf in wet suits or military dry suits. It is the only muscle which gives a concave curve adequate to stop the knife from slipping. Thigh sheaths or forearm sheaths can slip. Plus available space on wrists and forarms is limited if using dive computers and compasses.
The arguement for a big knife or small knife tends to be that for entanglement usage a small blade is more precise. Monofilament fishing line however is virtually invisible in most waters. Trying to cut what you cannot see and having to go by "feel" means for me that I do not use a knife. I carry proper diving shears for this use so I can open the blades and run them down my arms and legs until they "catch" and can do so safely. Equally and more worrying is if this stuff gets tangled on my hoses. Shears are definately safer then! You don't want the sharp edges of a knife being able to catch the hose!
So having qualified that I am a "shears" man for fishing line situations ... why carry a knife ? Well I like to have a knife for rope or netting and for use as a pry bar in emergencies. This last use has me firmly in favour of Infi. The knife also enables a defensive option should you need it and if the dive boat does'nt spot you or is a good distance away I use it as a signal heliograph ( which is why a like a good mirror finish on some of my knives ). It also comes in very useful if your foraging on the shore in any given emergency.
To safeguard my knife from the salt water I use "Lubra Skin" which is a proprietary spray developed by Extreme Ratio for the Italian Navy for use with their Ultra Marine Diving knife. It works really well ... much better than their knife. This knife by the way is available in Cobalt steel N690. Only the EOD guys use the Titanium. It was developed to work on both land and sea and to work on land and to hold a proper edge normal knife steel was preffered. This N690 steel is also used by Spyderco in their Jerry Hossum knives which are outsourced to Italy. So it is a proper knife steel. Probably equivalent to ATS 34 or 440C.
I like to use my SAR 8 for diving or my Satin Jack serrated clip point in kydex with two tek locks mounted on the sheath and altered to take the rubber diving leg straps. I also use an elaticated lanyard for each knife and secure these at the pommel. These accessories are easily available from any dive shop. I mount the Tek locks outside the sheath ( ie sheath close to the body ) which gives a tight fit.
On the issue of serrations on the blade as opposed to a normal edge ... I find cutting with serrations under water often needs two hands ... one to hold the rope and the other to cut. If however your hand is caught in a net cutting one handed and away from the trapped limb I find the normal edge slides easier and cuts easier. The serrations are better for catching fishing line and smaller stuff ... but as said for this stuff I much prefer shears. You do need a bit longer normal edge though compared to a serrated edge to cut in one slice on the heavy nylon rot proof rope but a good edge can still do the job fine. Each to their own though on that side of things ... but the normal edge is a lot better for shore based emergency/survival use.