I was waiting for an expert to chime in here before I put my two cents into the discussion. Thanks Mike.
Here's my take on the damascus issue. Damascus can be as good or as bad as the maker, steels involved, number of times at welding heat, heat treatment, etc... Too many variables to make a blanket statement such as, "damascus is good or bad" or "damascus is only for show".
Properly made and heat treated damascus is going to perform with the best carbon steels out there. Improperly made damascus, or damascus with too high of a content of pure nickel is not going to perform as well.
A properly made and heat treated damascus blade using a mix of O1 and L6 or 1084 and 15N20 makes one heck of a performing blade that is so much more visually appealing than a simple carbon steel blade. Bottom line; know what is in the damascus mix and know who made and heat treated the blade.