The biggest thing we are all overlooking is, they didn't care.
The old knives we see sharpened down to toothpicks were used until they couldn't be used anymore, because they were not just a knife, they were a putty knife, scraper, small pry tool, screw driver, can opener, battery terminal cleaner, and wire stripper. They were abused by our standards because the vast majority of the owners were not knife knits, so they didn't obsess over the knife. It was no more than the .99 cent screw driver of the day. Pocket knives were often sold off display cards up by the cash register alongside combs, nail clippers, and handkerchiefs. Did people get obsessed with nail clippers? Cheap plastic pocket combs?
I've said it before, but our view of things is very highly skewed or warped by us being knife knuts. We cringe if we see a knife being abused by scraping the gunk of the cylinder head before a new gasket goes on, or other such hard dirty work. But to that mechanic, who is not a knife nut, it's all part of using a tool. I have a friend who is a car mechanic, and he thinks I'm totally nuts because of my obsession with knives. To him, it's just another piece of metal with a handle that can used in various ways, not many of which the manufacturer could have foreseen. When it gets dull, he walks over to the bench grinder and puts on a new rough edge that cuts electrical tape, cord, opens boxes of replacement parts, whatever. I think he takes off a quarter inch of blade with each grinder session, but the does't care. It's a cheap replaceable all purpose tool that gets tossed in the trash can when it has no further use. Currently he carries a cheap poor imitation of a SAK, and it's beat to hell, and he'll get something else in a while. I won't recommend a real SAK to him because I have to much respect for Victorinox to submit one their products to his abuse. He doesn't care.
Another guy I used to work with carried one of those Pakistan made Buck 110 sort of knock offs. On breaks and lunch, he'd use it to slice up an orange, or cut his sandwich in half. To sharpen it, he'd go over to the side of the loading dock, and strop it on the cement. It put a rough as a cob edge on it, but did peel an orange or cut cardboard box open. For him, the 2.99 crude mid eastern brass and mystery steel knife was what worked for him because he was not a knife nut, and didn't care. When I once talked to him about using a finer stone, or maybe a diamond hone, he looked at me with a totally blank look and asked why, if the cement on the loading dock got it sharp?
We knife nuts make up probably less than 1% of the total populace of wherever we live. Heck, most people don't even carry a knife these days, preferring to open boxes with sawing with a house key or punching with a Bic pen. So when we see one of those old knives that were sharpened down to nubs, we know the owner was not a knife knut, and didn't care about that knife. It was just a tool to get through his life, and when it was done, shot, finished, he just got another one and went on with his life. To him, it didn't matter.