Technically, it's all "Damascus Pattern" steel as true Damascus steel (a mixture of wrought iron and simple carbon steel from wood fired smelters, folded many, many times at the forge) hasn't been made for a millenium or two. Traditional samauri swords are made in similar manner, although not in the same way Damascus steel was.
Damascus pattern clad steel is just that -- knife steel with layer of material with a pretty pattern welded to it. Plain steel or stainless steel or wrought iron will work just as well.
I'm not so sure I'd want a knife with Damascus patterning on the edge, there is no way to avoid have the edge made up of two different steels that will sharpen, cut, and wear differently. A single steel composition knife would, to my mind, have a more consistent edge.
VG-10 makes excellent kitchen cutlery. Maybe won't hold and edge as long as some of the powdered metal steels, but I suspect the improvements are minor compared to run of the mill department store knives.
Peter