STR said:
M2 seems to me to be a bit more specialized for smaller tools ...
Yes, as it is designed and as it is hardened in hacksaw blades, at 65-66 HRC with a high wear resistance it is a pretty focused steel. However it isn't just a paper cutter, I have one and would not hesitate to use it to cut up sods, while the impact toughness is really low, there isn't really a need for impact toughness on cutting blades, choppers are a different matter.
However Benchmade significantly underhardens it and the toughness is *much* higher assuming they are tempering it low and hitting the peak. While M2 is brittle for a tool steel, it isn't compared to the high carbon stainless steels commonly used thus the frequent reports of the toughness of the HSS Benchmade blades. Of course if that was what they wanted there are better choices than underhardening M2 but that is still better than the stainless.
Ref :
http://www.panix.com/~alvinj/graphM2.jpg
The hardness Benchmade uses corrosponds to the peaks, hacksaw blades are at the far right where the toughness is minimal, however the strength is maximal. Alvin Johnson took a hacksaw blade and drew the hardness down and while it got much better at impacts, it was horrible at cutting, the teeth would break off much easier. Similar issues are seen with cutting knives. It depends on how it is used.
In regards to difficult to sharpen, it is one of the easier steels to sharpen as it has a very fine grain and doesn't tend to form a burr nor does it have the angle limitations of the stainless steels or the more coarse ones like D2. The machinability is low but that isn't of any consequence when sharpening, if it is then something is very wrong. It is also one of the steels with a very high maximum sharpness, but in order to appreciate that your skills have to be very high and your standards similar like Clark.
-Cliff