The best pattern-welded steel is as good as 5160 but not better, except in looking prettier.
The popular idea that pattern-welded steel consists of layers of high carbon and low carbon steel and somehow combines their advantages without their disadvantages, having the hardness of high carbon steel with the strength of low carbon steel, is wrong. If you start out with two steels of different carbon content the carbon migrates during the forging process so it's uniform throughout the blade before you're done forging it, an average of the two steels you started with minus some carbon burned out in forging. The layers will look different after polishing and etching, but they won't differ in carbon content.
If you don't understand that and use too much low carbon steel in your mixture you end up with a pattern-welded steel that doesn't have enough carbon in it to be heat-treatable -- that's what's wrong with the pattern-welded steel made by Windlass in India and sold by Atlanta Cutlery among others. It's pretty, but it's mild steel, totally unsuitable for making knives out of.
Pattern-welded steel is easily available now, without forging it yourself, and it's being used by stock-removal knifemakers. It's discussed quite a bit in the Shop Talk forum at this website; we have some members who forge it.
Long ago steel was folded and hammerwelded many times to get rid of impurities. These days steel comes out of the crucible without any impurities, so pattern-welding is no longer necessary. It's still beautiful, though.
-Cougar Allen :{)