Striper28
Powdered steel will be as durable as the rest of the steels. As much as damascus quality depends on the maker, canned steel will depend on the maker also. Tim Foster of Eldorado, Arkansas has used a straight powdered steel blade of 1084 in a hunting knife cutting contest at Washington, Arkansas in the spring of 2001 and it performed as well as any knife used.
I have used pure nickel in making damascus and have found that 15N20 will produce a better contrast. The pure nickel is used with various non-carbon steels for guards and buttcaps. It is easier to drill and tap but not surface grind. When surface grinding the damascus with pure nickel, the nickel will load up the stone very quickly because it is so soft.
I like using 52100/15N20 and 1084/15N20 for a high carbon mix. Depending on the patter, I have some 1/4" saw blade that I use as the nickel bearing part of the mix. If I want a thinner lines, I will use the 1/16" 15N20. As John Fitch told me "if it won't make a blade, don't use it for one". That is close to what he said anyway, since my memory only records part of the time.

I use a damascus blade all the time and like any blade I use, I clean it up before I put it up.
As to the cutting performance of damascus, Kevin Cashen and I have both won cutting contests with damascus blades. Actually, I think Kevin has won 2 contests with the same damascus blade.
Whatever the reason that a person has for using a damascus blade, it should cut as well as any other blade, all other things being equal.