How does cobalt compare to carbide?
I'm no metallurgist, but I'll try to tell you what I think I know.
Generally, drill bits are high speed steel. M2 is the most common HSS. M42 and others are harder variations containing a lot of cobalt, upwards of 10%. They get very hard, upwards of HRC 70. "Cobalt bits" are M42 or the like, they're still steel.
Carbide is not steel, and (I think) is not technically even metal, it is a ceramic, though most people think of it as metal. It is tungsten carbide dust cemented together with a cobalt binder.
All steel is the same stiffness, regardless of heat treat or alloy. The flex mod is about 30,000 KSI. Period. doesn't matter what alloy or how hard. All steel will deflect basically the same amount as any other steel (in a given section) within it's elastic limits.
Carbide is much stiffer than steel, thus it doesn't deflect as much during a cut. It is much harder. It is not at all ductile, it can not absorb much energy before breaking, it is very chip prone.
So, to sum up, cobalt bits are similar to regular high speed steel drill bits, but a little harder with better abrasion resistance and a little less tough. Used properly, they last longer. Carbide is much harder, more abrasion resistant and fragile. Because it deflects less, it tends to be more accurate and leave a better finish. Used properly, it lasts much longer. It is much more expensive.
Man, that got long didn't it...