You should consider damascus as being an improvement in looks only. This viewpoint will not lead you far astray.
Damascus absolutely can not perform any better than the steels used in fabricating the damascus...
... with this tiny little caveat...
There is a very subtle micro serration effect of damascus, based on the alternating layers of steel, and how they alternate through a sliced material. This would appear to be most noticeable (and IMHO very subtle anyway) in tight ladder pattern damascus.
This micro-serration effect can be, IMHO, significantly bettered by simply leaving your final edge a bit toothy, say with a fine or medium diamond stone.
Problem is generally one of how to heat treat damascus. Each alloy has an optimum austenizing temperature, optimum soak time and temperature & number of temper cycles, optimum response to cryo, etc.
Damascus is a sort of amalgam of the steels used to make the billet. Heat treating damascus is a bit of a compromise, especially in the stainless stuff. Problems are multiple, from clean welding to carbon migration out of high-carbon alloy and into low carbon alloys (mitigated somewhat by careful sandwiching of 300 series or nickel between layers).
I can't prove this from extensive testing, but I think this is safe ground:
* If you know the materials used in damascus, the blade will perform no higher than, and
very likely less well than the best of the alloys used in fabrication.
* Example: A SS Damask blade from D2, AEBL, & 304 will perform less well than D2 and at very best, can approach D2 only if at same hardness as a comparison blade of D2. Problem is, the damascus might peak at Rc57-58, and D2 can be had at Rc60-61 and this hardness difference will allow better edge retention & slicing performance in general.
* Example: A blade from 0-2 and 15-N-20 may perform up to O2 or up to 15-n-20, but not higher than a pure blade of O2.
Be VERY skeptical of any outrageous claims about damascus performance in true usage, whether chopping, slicing, bending, twisting, push cutting, any kind of knife use.
Damascus is really beautiful stuff, and performs "OK" depending on the variety. Buy it because you want to admire it, appreciate it, or because you want the knife to hold it's value in collector market better.
Ok, I've donned my Nomex suit and am prepared for the flamethrowers.
See this very carefully worded reply by Anne Reeve... Chris is a very performance oriented guy...
http://www.bladeforums.com/ubb/Forum29/HTML/001089.html
[This message has been edited by rdangerer (edited 05-28-2001).]