The best answer that I can give you is that Damascus, more properly called Pattern-Welded unless it is really made by the Wootz method of steel production, has no real advantages over modern steels as far as utility is concerned. It is, however, frequently much more handsome to behold. If it is done right, the various different types of iron and steel that went into the making of the blade will, when acid etched, give the blade a sort of patterned appearance. The patterning will vary, depending upon how the forge welding was done. One example was a Bowie Knife that was made as a present for then President Ronald Reagan back in the 1980s. When finished, the patterning showed the United States flag, all thirteen stripes and fifty stars, on both sides of the blade, in perfect form.
Pattern welding was originally developed to combine the toughness of the softer iron with the harder, better edge keeping abilities of high carbon steel by taking rods of each material along with an appropriate flux, heating them to an appropriate temperature in your forge and then pounding them flat and folding that over. Repeat as often as necessary or as desirable to get the blade that you want. Most of the best swords fom the period of the Late Roman Empire up until about 1100 or 1200 CE, IIRC, were made in this manner. After that, the European smiths had developed the technology and the science necessary to make homogeneous steels in sufficient quantities to make swords from it and this was very much easier and faster, so pattern-welding fell out of use and was forgotten until the Twentieth Century when various British scholars set about determining how it was done for purely academic reasons and the famous knife smith, Jim Moran, in Maryland, USA, set about developing it for production purposes. Look up his name on a search engine and drool over his work, which now sells in the multi-thousand dollar range.
To give you an answer to your question, after all of this explanation, which is necessary to understand why "Damascus" is desirable to many people, I will say that its value to you depends upon what priority you place upon the aesthetics of the blade. It will, in all likelihood, be a quite handsome item, but the extra work needed to make it will cost more. So you need to ask yourself if the good looks are worth the extra price, since it contributes little or no extra utility, IMNSHO. But the final choice is, of course, yours to make. Were it my choice, I think that, if the blade looked really nice and the watch was a reasonable trade for it, I would make the trade, not for the utility of the knife, but as a collection piece.
Good luck.