I've got a 4 inch el Hombre with the plain edge. At first I thought that it would be difficult to sharpen, but that is not the case. Lanskey sharpener works as well on it as any other style. It just uses the corner of the stone more than the others. Ceramic sticks work great too.
I don't see how they would be more difficult to produce since they are really no more difficult to sharpen.
You could check the BladeForums.com FAQ on this, I'm pretty sure I read this there, but I believe flat-ground blades are inherently stronger than hollow-ground. Given good steel and manufacture, etc., it shouldn't be a big deal, but a hollow grind does leave a thinner edge.
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