True Damascus (wootz, pulad) is very different from pattern welding as used by European or Japanese smiths, and gave higher quality steel with better control and much less effort. It looks like pattern welding, but that is a surface pattern of impurities.
European and Japanese ironworks produced similar products, small "blooms" of spongy iron. These were pounded into oblong "sticks" of iron to compact them and drive off the inclusions. Then the smith's art lay in selecting the right combination of pieces with high and low carbon, and pieces from different regions with trace alloys. Then pound flat, fold, and repeat over and over ...
AFAIK no sword has been cast since iron replaced bronze c 800 BC. And micro cracks are indeed how metal fatigue starts in aluminum, but it has little to do with steel, certainly nothing to do with shock absorbtion. And I wonder how European smiths got those wires ... I think you are thinking of the "false damascus" invented in the 19th century.
We do need to think more outside the box on melee weapons. I think Alexei Panshin's The Star Well had some neat window dressing. Just think, electric "stun guns" and Tasers hadn't been invented when Traveller came out. OTOH, a Roman spatha was not much different from a Napoleonic broadsword 1800 years later. And the murders in Ruanda were done with knives and machetes the Myceneans would have recognized (ok, in bronze. But the Hittites had iron right next door.)
But I don't think a 5 m whip is a good idea in close quarters, especially in a ship. My first contact with the combat applicactions of mono-molecular filaments was in the early 1960s story, "Thin Edge" by Jonathon Blake Mackenzie (a pseudanim, I think). And swordforum.com used to have an article about titanium blades where they explained that the strength to weight ratio was good, the density was so low the sword would have to be bigger, which screws with the edge geometry. It ain't an easy compromise.
And what are Vilani traditional weapons?