The idea is that Damascus steel was a technology from before there was much metallurgy knowledge.

These days we have a molecular knowledge of steel and can control and test the microstructure at that scale. If you really want the best knife you look to metallurgists not artisans. Whatever you could do with Damascus steel you could do better with modern alloys and science.

There's nothing wrong with the old ways, but there is a lot of magical thinking about knives and swords that doesn't have much basis in reality. Buying in to the mythology can be fun as long as you don't get too attached to the myth and start confusing it with actual utility.

In other words, nobody owns a Rolex because they think it'll do a better job at letting them know the time.