James beat me to it.
This "folk wisdom" is based on simple sharpening devices and simple steel knives. A very hard knife was harder to sharpen well and also broke easily. A softer knife was easy to sharpen and lasted longer...thus "A softer knife is better". The toothy edge on a freshly sharpened softer knife would indeed seem very sharp and cut meat well. To a butcher that was great. The fact that he re-sharpened his blades daily( or several times a day) was not an issue to him, as sharpening his knives was part of the job. That is why most old butcher knives look like fillet/boner blades. They have been re-sharpened so many times that not much blade is left.
With the dawn of better modern steel and better manufacturing, the harder knives were the same price as the softer ones, and they replaced them because the edges lasted longer. A hard, properly sharpened blade will cut longer than a softer blade.
None of that will make old lore go away. Lawnmower blades, old saw blades, forging facing north, Jim Bowie's knife was made from a melted meteorite, etc. ....... I still regularly read that lard is the best quenchant ( at one time, it probably was).