Yes, Rockwell hardness is determined by an alternative method to Brinell hardness but relates in a direct, linear way to compressive and yield strength, a non-destructive means of testing by indenting (compressing) the piece over a small area. Typical knife-blades are hardened to >55Rc to resist deformation of the thin cutting edge. When the strength is exceed, a "brittle" steel will suffer very little plastic deformation prior to fracture while a "ductile" steel will suffer more plastic deformation prior to fracture.
As to use of S5, availability has been very low vs. S7 shock-steel. S7 is used by a few makers/producers, Scrapyard and Survive! among them, but most opt for L6, 5160, 1095, 52100, INFI, etc. I assume that much of this has to do with the cost of stock and heat-treatment to get the desired attributes (?). One of those attributes is wear-resistance conferred by carbide-content (carbon + formers). While S5 and S7 indeed have very high toughness at 58-60 Rc (>150J), that toughness plummets at 60-61Rc (only ~66J, similar or lower than CPM-3V). Keep in mind that such high toughness may not be detectable in the fine edge of a knife-blade or not experiencing the kinds of impacts for which S5 and S7 were designed. Furthermore, the composition produces no carbides to prevent abrasive/adhesive wear while 3V can outperform D2 and present considerably more corrosion resistance than S5. So in the end, it's a matter of achieving the necessary balance of fracture-resistance, wear-resistance, and corrosion-resistance. In rope-cutting tests, users have noted that higher-carbide steels maintain a sharp cutting-edge longer than low-carbide steels at the same hardness and geometry.
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