The good ones from dependable brands are very sharp indeed, but their real utility is in their incredible hardness; being harder than just about everything else in the natural world, their edges last a long long time. They are effectively not able to be user sharpened, and must be sent in for warranty work.
Cutting into a plate is not necessarily a sign of super sharpness though, as your wife's dull diamond ring can do so also, because it is harder than well nigh everything else, including the plate. And yet, I doubt a half-way decently carved diamond ring would ever cut a person wearing it.
As the previous poster said though, they are brittle and can't take the same kinds of abuse that high carbon steel can; as they say, user experience may vary.