I definitely agree with you here. IMO forging is more suitable for wrought ironwork or other forms of shaping. Many people aren't familiar with the term bladesmithing apart from blacksmithing. As you said, bladesmithing requires precise heat treatment for the metalurgy used for the blades purpose along with proper edge geometry.that conjures up a much more romantic image than what I do!
The reality of heat treating, the way I do it, is pretty boring for most people. I'm kind of into it- it's all about precision and understanding some of the metallurgical science behind how and why the alloys I use are developed, and following strict guidelines wrt quench rate curves, austenitizing temperatures, tempering temperatures etc.
I know a few guys who've extracted blooms from sand and then forged blades from it. While I respect the tradition and dedication of all that, and enjoy forging myself, there really is no comparison, performance wise, between blades made that way and blades made from many of the alloys available these days.
There is art and science wrapped into knife making, which is why I enjoy it. I think there is room for any and all interpretations of how to go about it, my angle is mostly centered around ergonomic interface, and cutting performance.
As for Damascus steel, I see that as an art that pays no benefit to the performance of a bade but only the appearance. Most Damascus is made from 15n20 and 1085 carbon steel which are two of the most standard carbon steels with very limited hardenability. It takes quite a bit more time and money to make a stainless Damascus blade which still looses toughness over the process of repetitive forge welding compared to a blade made with high grade blade steel like S35VN or CPM Magnacut.