Personally, I think the whole blade should be hardened. There are a lot of people that have never had a knife long enough to wear out the blade, but I have. I would not have like it if Case or Puma had did a differential hardening on the blades and my knife would have quit holding an edge. For the Cool look on a balisong, I would think that in any area that would reguire movement, it would need to be hard and polished. The hinge area of the handle should also be hardened.
If you are going to be using a high carbon steel, why not make it a damascus one for the super cool look. I have seen Chuck twirl them and they do look very good.
This is just some of my thoughts on balisongs and of noticing some deficiencies that have occured in the cheap one I bought a long time ago.