I'd have to disagree with the assertion that kitchen knives are not likely to be abused. Perhaps a ceramic kitchen knife isnt likely to be, but the rest sure are, IME.
I dont see any mention of prying by the original poster. Also, the diamond blade brand didnt make a folder, although one was planned and may now be in production. Also, a knife as hard as the HRc numbers mentioned will sometimes make many small knives if dropped, and can chip if any hard material is encountered during cutting, like copper staples, regular staples and sometimes even the cardboard itself, not to mention knots in wood and such.
As to the original question, the process uses a spinning mandrel which is pushed through the metal. Friction heats the metal into the forging range, possibly even the forge welding range, and then stirs the metal. There is a short video of the process and it looks a lot like running a mixer through stiff dough, except for the red heat, and the sparks and such. D2, an air hardening alloy, is used as the base metal, and after the pass through the metal, it air cools and hardens to the listed hardness. No tempering is done afterward. The spine is left soft because the mandrel only stirs about a 3/8" wide section. The mass of the rest of the piece also pulls heat away, aiding in the "quenching" after stirring. The reason that the edge and tip are not unusually brittle is the process produces a very fine grain size, which aids in toughness. The grain size is about 1/4 the size of the smallest grains listed on the ASTM grain size chart I found in an online metallurgy text. Standard ultrafine grains go down to about 2 microns IMS, and the friction forged grains are supposed to be about 0.5 microns. Also, the stirring process puts enough chromium from the D2 into solution for the edge to be stainless. D2 has just barely enough chromium to be stainless, but so much carbon that most of the chromium is tied up in chromium carbides, which gives D2 its amazing wear resistance when hardened normally. This process dissolves the chromium carbides due to the temperature used and allows all that extra carbon to contribute to the very high hardness and all the chromium to aid in corrosion resistance. All in all, I find it a fascinating process, although the knives are a bit pricey for me. Other metals were being tried besides D2, and the researchers who developed the process have also used the stirring process to weld aluminum and steel without the brittleness usually associated with welding the 2 together. Of course, steel can be welded to steel as well. The original developers also post here, and I'm sure they will post to clear up any inaccuracy in my summary. They were still working to quantify the amount of carbides dissolved and a few other things last I heard.