You are absolutely correct about the steel itself, though I'm less certain the right steel is matched with the right tools (given less and less focus on hand toools these days). Hand tools are either mass-produced with a focus on maximizing margin with cheaper components - or they're made by boutique companies for folks with deep pockets (Bridge City Tools comes to mind).
In the plane world, for example there are certainly a few high-end tool makers (LN, Veritas, etc.) still making good products and using exceptional quality materials. I have an LN block plane that I really like, but I much prefer my old Craftsman (and clone) planes simply because the steel (while technically inferior) is perfectly designed for the work. Hard enough to hold an edge well (though not as well as the new stuff), but thinner and lighter and so much easier to sharpen. I'd rather spend more time working and less time sharpening, and the good, old stuff hits the right balance where I'd have to spend a lot more time (on the whole) with newer, harder metals.
Saws are another example - I don't have any interest in another hard steel hand-saw. The idea of longer-lasting sharpness/teeth is attractive on the surface, but makes the tools impossible to sharpen myself with a file. And don't get me started on the worthlessness of most modern files.
Agree with Lee when it comes to turning tools - but then I have a decent investment in a nice grinder with CBN wheels so I can sharpen the better steels. If I was limited to stone wheels and an underpowered grinder, I suspect I'd be happier with some of the less expensive grades of steel.
