There are a few outfits making Damascus Steel pocketknives ... the blades tend to be more expensive even than some modern steel alloys, but they sure do look nice. And they take one heck of an edge.
Today's Damascus steel is much harder than the old stuff. One of the knife makers I know uses heavy telephone wire to forge the blades. Apparently the wire bundle has a nice selection of hard and less hard steel to work with.
I've looked at some Dmascus blades but they appear to be nowhere near the hardness of good current knife steel. They are, however, very beautiful.