Diamond burns.
Having worked with diamond, both polycrystalline diamond cutters (making them), and large jewelry gems (I've eld diamonds up to 48 carat finished/cut weight), I can't see diamond powder adding strength or cutting power. It would be great for abrasion resistance if you could get an even distribution of microcrystalline diamond dispersed in the steel matrix.
To get the diamond powder to fuse and bond with tungsten carbide substrate, we used a cut pattern on the face of the carbide, then super pressure and heat, in a reduced oxygen environment.
When making the diamond powder fuse into a solid diamond matrix cutting surface, it is done in an oxygen free environment. We used cubic press, with an internal pressure of 1,000,000 plus, and a normal working heat range of 1,400 to 1,500 degrees Celsius.
(Much higher for the natural diamond stones we worked with).
You might be able to use gas precipitation technology to lay diamond on the surface of an edge, like a coating, but I don't see how you would get the heat treat on the steel correct.
To get the diamond powder to sinter, we would use other elements mixed in with the diamond powder like cobalt, and a few other nasties (not something you want in a tool you are going to be using to cut food, for sure).
If you were successful, sharpening would require cutting with other diamond powder.
Lapping, chamfering with diamond powder, and sizing the parts all required diamond. Though we also had parts that were cut using edm.