That was the way when high carbon steel was scarce. Today, just use a suitable size bar of steel. You draw the tang and main shank to a lower hardness. Think about it, if the cutting edge is the same, is there any real difference in what the shaft and tang are?
Many purist woodworkers like their plane irons from iron with a welded steel cutting edge. Again, the difference is not significant. If anything, the weld does more damage than just using all steel.
Mainly, the reason to do the weld is because it becomes a "Hand Forged" tool. That changes a $40 chisel into a $140 dollar one. On planes the difference can be $300-$500.
We just had a thread the other day about the legendary chisels that sell for several thousand dollars. They hype them as being made from some mythical " best steel in the world." In truth, it is about the same as the Hitachi Blue #2 or Super Blue steels. The same plane iron could be made by most proficient bladesmiths for $10 in materials. The wood plane is just a pine block.
In Japan, I probably would have the Yakusa hunting me down for saying all the above. They take the legend and lore of their tool making blacksmiths very seriously. However, probably 90% of the sales pitch is hype.