I wouldn't say it's grossly inferior, but I know where you're coming from. Both examples are problem prone and more difficult to make correctly. There are Damascus blades and wooden rifle stocks that work and last as well or better just because the extra care and attention that has to be put into it in order to do it the right way, that's where the extra cost comes in. It strongly depends on who makes it and if they care enough to put the effort forth. I have a Skyline in Damascus and while I haven't put it to extensive testing, edge retention is at least as good as 14C28N.
No-name cutlery companies selling cheap imported knives for $20 generally don't care enough to make sure their blades are going to hold up, some of them may just be a false pattern etch and not real Damascus. A company like Alabama Damascus that Kershaw uses on their knives is real Damascus and it does seem to work fine. I guess technically if one wanted to say it was "Forged Damascus" they wouldn't be lying either way, depending on which verb you use.
Hand made Damascus is labor intensive and is not cheap. It looks so good though, if you have the cash to burn and really want it I'd say it's worth it.
I think part of the problem is determining which is 'real' and which is the cheap stuff.
At this point, going by price doesn't always mean anything as I think some makers are lowering their prices to 'match' the influx of imported Damascus billet. There seems to be some middle ground where I cannot decide which is which.
Example: I was just looking at a cable Damascus fixed blade for less than $200!
Of course high end is high end, but what's to stop some unscrupulous person from marking up their inferior products to make it seem like it's higher quality?
It doesn't really affect me for I like unusual blades but to the layman or younger person who doesn't know it poses a problem. Or maybe the problem is all in my head!
I mean if you like it, don't worry about it, right?
Then again, purchasing inferior Damascus thinking its high quality would tend to give Damascus a bad reputation.
After thinking a bit, I take back what I said about Damascus being only an aesthetic thing.
Damascus meant that a blade was
hand forged and not just created by stock removal. This from back in the day when forged was thought to be better (I still think it is!). It also usually meant that the blade was a custom.
Now, not so much.