Well, to approach your question from the other end. The coated Military is coated with DLC, which is very hard and won't come off, unless you attack it with an abrasive (like when slipping during sharpening).
I am not sure, but from what I have been able to gather, Zylan is nothing but a different brand name for Teflon. They are probably very similar if not identical, chemically.
As to your concerns about Teflon: Teflon itself is a Fluoro terminated polymer and as such incredible inert. I would be surprised if it will ever found to be toxic. All the articles that I have been able to find about the toxicity of Teflon have been very unscientific and have not offered any explanation to the mechanism by which it is supposed to act toxic. Again, from what I can gather, when heated, a teflon film will give off particles. This is not surprising, the same happens with ordinary glass, when heated to a very high temperature. The particles will clog the lungs and are therefore harmful. For glass this is described by the term "silicosis". However, again, the material - glass - itself is not toxic, but the fine dispersion of an inert material cloging your lungs is - obviously - harmful. I would suspect the same is the case with Teflon. As long as you don't heat it (which I hope you will never do with your knife blade - supposedly Teflon is giving of the Teflon flu substance at temperatures as low as 285 F which is still enough to draw the temper from your knife eventually) the coating should not represent a threat. The other claims of toxicity are linked to ammonium perfluorooctanoate (C-8) which is not Teflon but used in the production of teflon, big difference. How much C-8 is left in the final bladecoating, I have no way of knowing.
While your general concern is probably justified (personally I would never own teflon coated pots or pans), I doubt that your knifebladecoating represents any health threats. Just my $0.02.