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A lot fo the cutting comp knives are made from CPM M4. There are some smiths who use S7 for things like tomahawks. As for working with aeither by hand, probably not a good idea.I don't know about S7, but Gayle Bradley told me that if you work with M4, you had better like the finish that you have on it before you heat treat the stuff because hand sanding it in a hardened state is out of the question.
With the other options out there, I'd not use S7 for anything knife related.
I think the main problem with S7 is a lack of abrasion resistance. S7 is a shock resistant steel so it is made to take impacts but not hold an edge.
ya s7 has really low edge retention but killer impact strength
The grade has almost no carbide volume in it's structure so it's abrasion resistance is low. ...Would it make an acceptable chopping knife? Yes, but you would sharpen it more than others, made from a little higher grade materials.
If impact resistance is the key attraction to S7 for a chopper, then one would assume that edge deformation would be less likely and abrasion resistance would come into play.