ariel, what you are saying is happening now, the traditional skills of khukuri making in nepal are passed down by word of mouth and experience, the colour to heat a blade for hardening, the use of a tea kettle of boiling water to quench and harden the edge while leaving the spine less hard at just the right moment is not easy to document without doing it consistently time oafter time. as demand goes down, the people with the knowledge get older and the young want to move to the big city and be doctors, ghurkahs or computer techs, not low caste steel pounders.
one anecdote for steel in india early 19c. by the time of the sepoy mutiny in the 1840's, a lot of surplus 1796 LC sabre blades were converted to tulwars for the indian troops of the east india company. the local sword makers just could not compete.
the troops then rebelled. the british troops who fought them with their newer pattern swords complained that the indians had better and sharper swords that were more effective. turned out that the indian troops actually put a decent edge on their old 1796 lc sabre blades, and kept them in leather/wood scabbards which did not dull the edges like the brits steel scabbards. the brits there after put wood liners in the metal scabbards or wood/leather ones.
by the time of the american civil war, it was extremely rare for two sides to get close enough to actually use swords, and when they did most were fairly inexperienced in their use and few were even sharpened, so sword cuts were rare. the brits who fought a lot of native troops armed with swords and spears, as in the mahdis troops at ombdurman did use theirs to effect, but most of the mahdis casualties were due to artillery and the new machine guns. even winston churchill used a mauser pistol when he charged with the lancers and not his sword.
the boer wars kind of put paid to the sword, boers did not play fair, shooting brits in their red or white uniforms at a thousand yards from cover.
tho it was still used occasionally during ww1, and even more limited in ww2 (except for mad jack churchill - no relation to winston - who not only captured a company of germans with just his sword, but was credited with actually using an english longbow to kill a german sergeant in battle. he walked ashore at normandy on d-day sword drawn and followed by a piper.
the US navy eliminated swords for officers at one point in ww2 to save metal to build battleships. the officers ignored the order & got them reinstated. even the humble cutlass is again in ceremonial use now in the USN for enlisted.sadly they tend to use stainless steel blades which are brittle but look good.
the filipino marines still use a sword for jungle combat against the rebels where, on jungle trails and thick brush, suddenly may bring two sides together in surprise, and where even a carbine may be too long to swing around in the vegetation. they use a ginunting in close quarters to good effect, as do the ghurkahs with their khuks.
seems the sword will never completely die out. and there is still a place for wootz, if we can figure it'as secrets.
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