It's not just propaganda. It's a very good knife steel for hard use/emergency wilderness survival/military applications.
It is extremely tough, resistant to chipping and fracturing, while hardened to a fairly high hardness. It is also extremely strong, resistant to bending when pried laterally. It is very flexible, capable of bending a lot without snapping, and capable of bending a fair amount and returning to true instead of taking a set. It can take a very sharp edge. It holds an edge for a long time, and is fairly easy to bring back to high sharpness. It is not stainless, but it has corrosion resistance on par with some stainless steels.
The reason you don't see any other knife companies using it is because it is proprietary. Jerry Busse researched and designed the steel himself, and has it specially made in batches for just his knife company.
Does it make all other knives by other manufacturers obsolete? Of course not. Do Ferraris make all other automobiles obsolete, because they're very high performance? Not if you need a mini van to take the whole family on a camping trip.
Some knives are made as pure cutters for soft materials, with a much higher hardness and more acute geometry. Some knives are made of ceramics, or titanium, or various exotic materials, for such purposes as total corrosion resistance for diving, or so as not to be magnetic, for certain types of specialized work. And so on. There are all kinds of specific uses that would be best served with a knife made out of something other than INFI. Also, knives aren't available in INFI to cover all market segments. Spyderco makes great folders, and folders are not (yet) available in INFI. KABAR sells good value knives at an inexpensive price point; INFI knives tend to be sold at a more premium price point. And so on.
There's plenty of room for other knives in the world. INFI is a superb steel for its intended scope of applications, nonetheless.