ROFL, everything gets complicated if you look at it too close! ^0^
Large carbides do complicate matters... I haven't experimented on D2 under the scope, but I'd guess it acts like medium clay with small soft rocks in it. A diamond stone would be hard enough to grind down the carbide particles and sharpen them along with the matrix steel, while an Arkansas stone (which is softer than the carbides) would tend to round them a bit and push them deeper into the surface (or tear some loose ones out) and the blade would tend to skim along the surface of the stone on top of the carbides (which, I would think, would tend to make sharpening D2 on Arkansas stones rather slow going, at least on the finer polishing stones. The soft, coarse ones probably work okay since they'll just take out the carbides along with the shavings).
It also makes it easy to understand that old saying that "D2 takes a lousy edge and holds it forever"... make the bevel angle too small and there won't be as much steel surrounding the carbides on the edge to hold them in so they can easily be kocked out by something that puts sideways pressure on them, and if that happens, the edge would look more like a microscopic saw.
With diamond and waterstones, I can get a smooth edge on my Queen D2 whittler whether I sharpen it at 8 degrees per side or 18 per side, but then when I actually whittle with it, the thin edge quickly becomes very toothy, while the thicker edge stays nice and smooth. So, I think carbide size is just a factor in how low you can make your bevels on a particular steel and still have a durable edge.
Stropping would probably be like lapping... home made telescope mirrors are polished on asphalt laps, gem polishers often use tin laps and machinists use soft gray cast iron laps. Generally, the lap needs to be softer than the thing you are lapping because the loose grit rolls around and eventually sinks into and embeds itself in the softer surface. At that point it pretty much stays there while it scratches the harder surface that is being lapped.
Leather (or cardboard etc.) is a soft fiberous material with lots of little pores where grit (like your chrome oxide or aluminum oxide strop powder etc) can get trapped and held while it scratches the steel so it is sort of like a flexible lap (or stiff polishing cloth) that will compress under the weight of a blade, bending to hug the surface, and then spring back up behind the blade edge. This would help break off any burr steel that got smeared past the edge, but the contact angle at the edge would be greater than the bevel angle and tend to round the edge if you strop too much (after the burr is gone).
Anyway, when I first started stropping, I stropped the smoothest dull edges you've ever seen. But, thinking about how everything has some flexibility on a micro-scale, got me to try stropping by setting the bevel flat on the strop, making only one or two passes to deburr and then lowering the spine slightly so the very edge is a tiny fraction of an inch above the strop with the idea that when the leather springs back it will just barely graze the edge at about the same angle as the bevel at that point. Took a bit of practice, but worked pretty well once I got the feel of how to lower the spine enough to keep from rounding my edges (too far and it doesn't do anything but polish the corner between the bevel and the relief bevel).