The only problem I have really heard about the Cold Steel Katana is that the tsuka wood often cracks and the entire handle is really only being held together by the tsuka ito (wrap). This seemed to be a problem with the older ones and I know a few other companies have reports of this as well.
The Cold Steel is considered by many to be a good back yard beater but you will have to have the tsuka repaired.
I can't say how many reports are hearsay or simply falsely attributed reports. A good many production tsuka are often reported as cracked by folk disassembling their swords. How many did so by thumping on the tsuba? What were they thumping with?
The Cold Steel katana were originally coming from a forge or forges influenced by Fred Chen (now Hunano). Fred Chen used to be partnered with Rick Barret and others to bring in what were/are Cicada Forge wares.. In fact, some of the old articles about Rick discuss his traveling and working with Fred Chen.
Somewhere along the way, Cold Steel decided to rename a bit and offer both the Warrior series and the Imperial series. My understanding is that little changed but that the Imperial series had a bit more attention paid to them in construction and finish (specifically polish levels and fittings).
I have read as many praise the Cold Steel katana and this was from the very start by folk such as Eric Tracy and other (not wholly inexperienced) enthusiasts of Japanese style swords. Some have found the basic katana heavy and even Eric noted differences in feel from example to example quite early on. Even now, what I read seems to indicate either love or hate. An aquaintance whose katana judgement I trust pretty much more than what I read on the internet has expressed thought that they (basic warrior katana) were "really not bad, price considered".
It's easy to pick on Cold Steel and I admit to doing my share of it but from a view of fair observation, the Warrior grade katana have really probably been as reliable and trustworthy as anything else out there in the same price range. That they are through hardened has been viewed as a plus from the get go, except by those that "need" a hamon.
Nor would I give my words any more credence than anything else you might read, aside from owners of the product themselves have actually written. What I did write does mostly reflect what I have read about Cold Steel katana right from the introduction, now nearly a decade ago (well, eight years, threabouts).
Cheers
GC