Actually the term came into being back in the day when Schatt & Morgan would test their blades by cutting a wire of a certain density and hardness without damaging the edge and then hitting the blade with a file to make sure the blade wasn't so hard that the file wouldn't mark it.
I'm not certain when Rockwell testing came into being (perhaps someone here knows) but I'm guessing that the File and Wire testing method was before Rockwell became widely used.
Oh by the way Jeff, the large toothpick you posted came in the 1st F&W Series, a medium @ 4 1/4" was in the 3rd.
As my signature will attest I've had the S&M bug for a Long time now, I love their history and as has been said here the diversity of patterns they produce plus the steel choices. I got started in 1991 when Queen came out with the Annual Reproduction Series, little did I know then that Bill Howard was the man behind the execution of the wide variety of old patterns. But as we have all come to see with Great Eastern Cutlery, Bill is an old pattern kind of guy!
Anyway that's what got me started and it has been a slippery slope ever since!!

The File and Wire Series is the top of their line and I have only had one that was not except-able. And I have them all. That particular knife was returned and a very except-able knife came back. I also have most of the Annual Reproduction Series sets and the 20th is the only set I have sent back. They were just not up to par and lets face it these knives are their premium knives and carry that price.
I loved the idea of the Heritage Series, with the 2 old catalogs reproduced and I truly do wish Queen had pursued them further. But this was after Bill had left Queen and the knives just didn't have the feel/look or the execution they needed to succeed. As it has been stated in this thread the tangs to blade ratio and the blade to handle ratio is off and they just don't look or feel right when using them. It really is an art form making traditional pocketknives and perhaps that is why we keep looking to the past to see how things were done.
Anyway to the OP, I would say Don't be afraid, find a dealer that you can trust, call him, tell him what you are looking for, ask him to check the knife you are ordering and if it don't cut the mustard SEND IT BACK! That's what I do, production knives, made by anyone, are not perfect, so don't expect them to be, but don't put up with large gaps, weak or over strong springs, wobble in the open position or terrible uneven grinds or burnt tips.
Schatt and Morgan have come to be known as Queens top of the line and I can tell you Queens standard D-2 line is a very good knife for the $. Just ask anyone who has a 2009 Blade forums Barlow. Which I do believe is the 1st pocketknife to carry both the S&M and Queen tang stamp.
If you are having trouble and want a good dealers name PM me I'll be glad to help.
Dave