I have to reply to this one, Experts please correct me if I am wrong.
The Khukri is your "do everything" knife, it can does and will do anything you put up against it. The "sweet spot" is the hardest part, meant to chop and cut with, the tip can do this but is softer because it is more likely to hit a rock and be dinged, or to be used as a shovel to dig with. The area forward of the cho is soft, cause, well my theory is,
A. It is easy to mess up an edge / blade so close to the hilt if one was to strike something here with bad technique, with the majority of the weight of the blade forward of this point the edge can easily be rolled with a less than perfect strike. If it is soft, all the better to chakuma or hammer out your messed up blade.
b. If the blade was hardened here, the point of the blade where it is the least wide, I think the forward weight of the blade would be more likely to snap off, Although on a thicker model (see AK) I think this would not be a problem, On a Suripati or a Kobra it would be.
... if this isnt correct please correct me, and besides... the kamis have their own reasons.
